According to Mortgage Solutions house price growth rose 0.3% in January, which means the annual growth figure remains steady at 4.4%.

Prices rose to an average of £196,829, according to figures from Nationwide’s House Price Index.

Nationwide’s chief economist Robert Gardner said growth has remained in a fairly narrow range between 3% and 5% since last summer.

“As we look ahead, the risks are skewed towards a modest acceleration in house price growth, at least at the national level,” he said.

Rising employment levels and a slight slow down in earnings growth has left regular wages rising at a ‘healthy level’, he said.

“With this trend expected to continue and with interest rates also likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen in the months ahead.”

Sales director of New Street Mortgages, Adrian Whittaker, said: “Yet again these figures show an unseasonal increase in house prices resulting from a market that is characterised by rising demand and limited supply.

Whittaker said increasing competition means the speed of a mortgage application is ‘ever more important’, as borrowers and advisers want to be confident that a lender has the systems in place to provide a fast and consistent lending process.


Source:       29/01/2016