UK property prices on the increase

Homeowners will welcome news that property prices throughout England and Wales are on the increase, according to a report compiled by the property company, Rightmove.

The analysis undertaken by Rightmove showed that property prices have risen by 6.1% in February in comparison to February the previous year.

The report suggests that the average cost of a home in England and Wales is now £229,398, representing an increase of 3.2% from January. This marks the biggest rise for houses since April 2007.

The Commercial director of Rightmove, Miles Shipside, commented:

“A price jump of over 3 per cent is comparable to the pre-credit crunch boom-times.”

The report appears to be very promising for homeowners and estate agents looking to sell. However, it is less likely to be looked upon favourably by buy-to-let small business investors and landlords looking to increase their property portfolio.

Despite the recent rate of increase there has been some speculation that this is not sustainable in the longer term. It is thought that the availability of mortgages is still very low and prices are being artificially inflated by a lack of supply.

Ian Perry, the spokesperson for the Royal Institution of Chartered Surveyors (RICS), commented:

"House prices are likely to rise in the short term but if more supply continues to come on to the market, it is possible that the market will run out of steam in the latter part of the year."