House price rose 7.6% in 2016

Housing-Market-Up-UKUK house prices rose 7.6% in the year to February and property experts expect the growth to continue. According to National Statistics, this price rise has marked a slight dip from 7.9% in January but the market remains optimistic with the average UK home now costing £284,000. London posted the highest average house price at £524,000 and the North East was the lowest at £158,000.

Mark Harris, chief executive of SPF Private Clients, says: “The volume of mortgage approvals rose a healthy 22% in February. While this was partly driven by landlords and second homeowners to get a purchase completed before the stamp duty hike, buyers are generally displaying some confidence in the market. Cheap mortgage rates, base rate and falling unemployment are giving buyers more confidence to take the plunge. Limited supply is likely to be the biggest issue that will be faced in the short term but it may be house price growth which is the bigger issue longer term as it continues to outpace real earnings growth by some margin.”

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