News

Figures released today by the Nationwide have shown a 0.3% increase in house prices with the average property now costing almost £169,000. The report also revealed house prices over the last 12 months had increased by just under 2%, the fastest rate of growth for almost three years.

The lender attributed the rise to easier access to mortgages thanks in part to the Government’s Funding for Lending scheme which is designed to encourage banks to lend at competitive rates. Improved job prospects were also seen to have had an impact.

However, the report highlighted a shortage of new homes being built.

Simon Ashdown at LPC Living, the housebuilder owned by the Pervaiz Naviede Family Trust, said “While an increase in house prices is positive news to those already on the property ladder, today’s announcement is likely to further deter would-be first-time buyers from pursuing home ownership. Increasing the supply of new homes to the market would likely level out house prices and, with schemes such as Help to Buy, encouraged young people to aspire to owning their first property”.