According to the Halifax UK house prices have risen 8.7% in the last year but month on month fallen by 1.1% suggesting a slowdown.
House prices over the year are at the highest inflation rate since October 2007 with the Halifax showing 8.7% and Nationwide 9.5% growth in prices.
The Nationwide data shows UK the average house price at £180,264 which is the highest figure since January 2008 with London double this figure at £362,699, the biggest gap ever recorded.
For remortgage buyers higher prices give them an opportunity to release capital which they can use to improve their home.
House prices slowing
On a monthly basis house prices have slowed and are 1.1% lower compared to February. This follows mortgage approvals which are 8.3% lower in February compared to January as reported by the Bank of England.
House prices has seen 15 months of increases but with prices rising at only 0.4% in March compared with 0.7% in the previous month.
The longer trend is more reliable a measure and over three months the rise was 2.3% according to the Halifax and 2.6% according to the Nationwide.
Higher house prices means first time buyers and home movers would require a bigger deposit or higher earnings to purchase a home.
London prices still strong
The Nationwide said London house prices are up 18.0% compared to a year ago, significantly higher than the rest of the country.
Prices in the capital are now 20% more than than the 2007 peak and other cities in the UK have also seen strong price rises.
Rising property values in London have allowed the equity release buyer to access money with a lifetime mortgage and use this to consolidate debt, for home improvements or holidays.
In Manchester prices are up 18% over the last year with Brighton and Cambridge up by 14% although other areas such as Sunderland was higher by only 1% and Coventry by 2%.
There remains a shortfall in properties with new builds 40% lower than before the financial crisis with increasing demand suggests prices will continue to rise.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt, home improvements or gifting to a family member.
Learn more by using the equity release mortgage calculator, property value tracker chart and mortgage cost calculator. Start with a free mortgage quote or call us and we can take your details.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
