Monday, May 8, 2006
Category:
Property
House prices increased by two per cent during the month of April, according to new figures from the Halifax bank.
The data reveals that property prices rose by 4.4 per cent over the first four months of the year and Halifax is predicting that the housing market is likely to remain strong over the forthcoming summer.
Over the last year, house prices have increased by eight per cent, the highest level since March 2005, meaning the average UK house now costs £178,992.
However, it is expected that the property market will start to cool towards the end of the year, especially as the increasing cost of energy and council tax starts to impact on households.
"Whilst the market may remain relatively buoyant over the coming few months, we expect the recent softening in the labour market and the continuing high level of house prices in relation to earnings to curb demand," said Martin Ellis, Halifax chief economist.
New figures from the Bank of England also reveal a strong housing market, with mortgage lending rising by £9.3 billion- ahead of forecasts of £8.6 billion.
