House price increases strongest for a year

Posted: 15 May 2006 11:00:57 GMT

            Property News - House price increases strongest for a year

New research has shown that house prices witnessed their strongest annual rise in more than a year between mid-April and early May.

According to Rightmove, asking prices climbed by an impressive 5.9 per cent against the figures from last year, which compares to a 4.1 per cent annual rise in the preceding 30-day period.

The strongest rise since the March/April survey in 2005, the figures suggest that the recent recovery in the property market is continuing.

Demand appears to be fairly high across the country, but supply is still relatively low and house prices are inevitably climbing as a direct consequence of this.

The average asking price increased by two per cent to £209,829 in the four weeks to May 6th and there appears to be little evidence of the recovery stalling in the immediate future.

While there are some suggestions that affordability constraints will begin to have an effect, Rightmove has increased its forecast for house price inflation for this year to eight per cent, rising from the five per cent predicted at the beginning of the year.

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