House rates spurred in March and reported largest monthly rise since August. The information was shared by the biggest mortgage lender of the UK.
Halifax stated that the average price of a house in the UK increased by £227,871. The prices were 2.7% upper in March compared to the last year figures. There was a surprise boost in the housing market after long months of tame growth and drops in December and January, reported Halifax, part of Lloyds Banking Group.
The performance of London housing market in the overall growth is unclear as Halifax won’t be releasing region-wise segmented data until this weekend.
In the previous month according to the survey, in some prime locations of the capital house, prices had declined significantly in the past year. There was 15% drop in Wandsworth. Relying on the figures from Your Move estate agents, the north-west was a rapidly emerging market in Wales and England, with price surge in Blackburn reaching 16.4%.
Experts have cautioned against forecasting an extended recovery in price on the basis of Halifax figures. “The hike in the house price in March as per the Halifax’s measure seems to be volatile, despite strong growth trend. The index of the Halifax is prone to huge variations,” said the chief UK economist at Pantheon Macroeconomics, Samuel Tombs.
In addition, Howard Archer, a Chief economic adviser at EY Item Club said, “The rise in house rates posted by the Halifax, in no case shifts our opinion that the coming period will be intricate for the housing market. We anticipate the price gains in the coming days to a diffident limit of 2%.”
Managing Director of Halifax, Russell Galley stated that constant shortage of properties for sale, low mortgage rates, and low unemployment is expected to strengthen the price growth in the coming months.