House price rise continuing in 2016

remortgage-up-53-pcThe average increase of house price was £3,500 in January, which was due to the fall down in supply of houses for sale. The average property price which rose 1.7% last month and 9.7% last year to £212,430, according to the latest Halifax house price index. January had the speed in growth increase when compared to average house price growth of £2,000 a month since last year, increasing the cost of the average home by £13,131. The imbalance between supply and demand continues to make use of significant upward pressure on house prices, according to Martin Ellis, Halifax’s housing economist.

Jeremy Duncombe, director of Legal & General Mortgage Club, says: “Long term trends show house prices are still rising significantly. They are continuing to climb at a rate that far exceeds inflation and wage growth. This is reducing the ability of people to enter into property market, as the average asking price is rising faster. We need to ensure that there is an adequate supply of suitable properties for home movers in order to encourage more efficient use of current housing stock.”

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