UK House Prices on the Rise

Published on in Banking News by

With the pessimistic outlook for the UK economy proving hard to shake off, any news that puts a positive spin on the ailing state of affairs is more than welcome.

mortgages, banksNew figures from Nationwide have shown that the average UK house price in March 2013 is up very slightly at just under 1% on the levels from the same time in 2012.

The 0.8% increase is the first annual increase recorded by the building society since February 2012 and the average UK home is now worth £164,630.

The increase was confirmed by separate figures released by the Land Registry. Their statistics show that prices in England and Wales rose by 1% over the last year, with London showing the highest increase at a level high above the national average, at 6.3%.

The news wasn’t so good for those living further north, with prices in Yorkshire and Humberside falling by 0.9%, representing the biggest drop across the nation.

Robert Gardner, Nationwide’s chief economist, explained some of the causes behind the hopeful new figures.

“In recent months, buyer demand has been supported by healthy rates of employment growth, as well as the Funding for Lending Scheme, which has helped to reduce mortgage costs and increase credit availability,” he said.

The continued historic low level of interest rates and newer deals for home buyers that reflect the easing of lending conditions are both helping to keep the situation stable.

However, Nationwide warned that the outlook was “unusually uncertain” as quarterly comparisons – the method preferred by many economists, who cite it as being a more accurate reflection of ongoing trends – means that prices only rose by 0.2% over the last year.

The impact of the new Government measures aimed at helping new homebuyers as well as existing ‘mortgage prisoners’ is hard to gauge at the moment, but it seems that at the very least the UK housing market is likely to at least remain stable over the summer months.

If you are considering breaking into the property market, a good bank account can help to bolster your income and offer good mortgage deals. Remember to compare the market before making any decisions to ensure you get the best deal.

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