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Biggest House Price Increase For 10 Years, Helps Boost Property Market

February 22nd 2012
By: Melanie

LSL Property services, have predicted that 2012 will be an ‘excellent’ year for the housing market.

Owners of family homes have increased their average asking price by 4.1%. This is the highest monthly increase since April 2012, a rise of £9,192, figures show. The average cost of a three bed house has risen by £3,222 since the same period last year.

This has been partly due to the slight ease in mortgage lending, and the reduction of deposits – loans requiring 10% are up by a third compared to last year.  Also the buy-to-let market has increased again, as landlords have been experiencing exceptionally high yields from high rents over the past few years.

David Newnes, at LSL Property Services, owner of house search website Your Move and Reeds Rains, stated: “Rising asking prices are a sure sign of growing confidence among buyers and sellers alike.

“As inflation has begun to fall, mortgage lenders have taken advantage of the low base rate by offering larger and more affordable loans to buyers anxious to snap up good value properties and lock in the savings available on the mortgage market.”Estate agents in other areas of the UK are also reporting that sales in the last quarter of 2011 have left them short of saleable stock.

At Intercounty we have had an incredibly busy year so far, and we need more houses to come onto the market to sell, so if you are thinking about buying or selling why not pop into your local branch for a coffee and we will be able to help.  If you are a first-time buyer, then you need to hurry to beat the Stamp Duty cut off date, which could save you up to £2,400.