Average house prices tops over 6%

UK-House-rentThe average property prices in England and Wales increased year on year by 6.4% in December, the latest index shows. The month on month house prices rose by 1.2% since November 2015, according to the monthly index report from the Land Registry. London has recorded the greatest increase in its average property values with annual growth of 12.4% and the biggest month on month rise at 2.1%.

Mark Posniak, managing director at Dragonfly Property Finance, said: “With demand being strong and supply being weak, prices in December challenged the usual seasonal slowdown. And the belief is that the construction lag is having a significant impact on the market. On a more positive note, we are seeing noticeably more construction activity at the moment, particularly by smaller developers. But this will take time to trickle through into the market. On considering 2016, it’s hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rates unlikely to rise in the near future and a robust jobs market.”

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