House Prices on the Up Again

01 August 2006

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Britians Biggest Building society reports fastest house price growth for 15 months

According to reports from Nationwide, house prices rose by almost 1% in July, compared with just 0.3% in June. A surge which meant that house prices have increased by 5.9%, this year.

That means the average house in the UK now costs £167'000 - £2'000 more than it did, last month, and almost £10'000 more than a year ago.

According to Nationwide economist, Fionnuala Earley, the rise had not bitten the market as hard as expected.

"buyers are still able to overcome traditional lending constraints", she said.

More and more parents are offering to help their children afford the home of their dreams, by taking out top up mortgages, or offering large sums of cash for the deposit.

But, it's predicted that affordability issues will kick in, later, this year, as house prices go beyone even parents' reach.

But for the time being, any shortage in first time buyers is made up for by buy-to-let landlords, encouraged to invest in would be owners who may be saving up for a house of their own.

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