House prices rose once again from December to February, up 2.1 per cent on the previous three month period and an increase of 7.9 per cent on the same period a year prior.
The figures from the latest Halifax House Price Index show that between January and February house prices were up 2.4 per cent, the eleventh monthly increase in the past twelve months.
However, the average house price remains 7 per cent below the peak in August 2007.
Commenting, Stephen Noakes, Halifax mortgages director, said: “Several factors appear to have boosted demand, such as the improved economic outlook, unemployment falling faster than expected, improvements in consumer confidence and low interest rates.
“However, continuing pressures on household finances, as earnings fail to keep pace with consumer price inflation, are expected to remain a constraint on the rate of growth of house prices. We are also seeing signs of a revival in housebuilding, which should help bring supply and demand into better balance and curb upward pressure on prices over the medium and longer terms.”
Alex Gosling, managing director of online estate agents Housesimple.co.uk, said: “There’s only one way prices are moving at the moment and that is upwards.
“Although renewed consumer confidence and a healthier economic climate are certainly playing their part, in truth it’s an out of kilter demand-supply balance which is having a much greater influence on property prices.
“It’s a case of the buyers are there, but where are the sellers?
“In London especially, estate agents are lining up 20 plus viewings for many properties and guide prices are being smashed as buyers bid against each other desperate not to miss out for fear that prices may run away from them.
“The property market needs stock and quickly.
“The problem is that many sellers don’t seem to be in too much of a rush to sell.
“Certainly in London many homeowners are waiting to see how much further prices will rise before putting their properties on the market.
“However, that’s not necessarily the case outside the capital where homeowners are simply not in a position to sell because they’re still in negative equity.
“They have little choice than to wait for prices to recover enough to drag them out of that position.”
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