1st June 2015
The Land Registry has reported that house prices in England and Wales rose 0.9% month-on-month in April, causing annual house price inflation to moderate to a 14-month low.
This latest statistics follow a 0.8% month-on-month dip in March.
Nevertheless, annual house price inflation eased back to 5.1% in April from 5.3% in March, 6.1% in February, 6.4% in January and a 52-month high of 8.4% in August.
The data follows on from both the Nationwide and Halifax reporting appreciable increases. The Nationwide reported that house prices rose 1% month-on-month in April, which was the largest increase since June 2014. In addition, the Halifax reported that house prices jumped 1.5% month-on-month in April after an increase of 0.6% in March.
Research group IHS Global Insight has upped its forecast house price increase in 2015 to 6% from 5%, partly due to the increased upward impact on prices coming from a lack of properties on the market.
Howard Archer, chief UK and European economist at the group said: “We also suspect that the housing market will benefit from reduced uncertainty following the decisive general election result.
“We believe that housing market activity is now turning round gradually after losing appreciable momentum from the early-2014 peak levels, and we see activity picking up modestly over the coming months.”
He added that this belief is reinforced by the British Bankers Association (BBA) reporting a fourth successive modest and faster rise in mortgage approvals to a 10-month high in April.
“Meanwhile, a recent shortage of properties coming on to the market seems to be exerting increasing upward pressure on house prices,” added Archer.