House Price Inflation picks Up

Figures released by rightmove suggest that house prices have picked up in February, making prospects of large falls unlikely. The survey found an increase of 5.3% in the asking prices, despite a glut of properties on the market. It is worth noting that house prices are often sold for less than the asking price. The sale price is a more reliable guide to effective house prices. London house prices were amongst the most sluggish, being particularly affected by the downturn in the housing market.

Home sellers may have been encouraged by the latest interest cut and homebuyers looking for a bargain. However, with the governor of the Bank of England being cautious on future interest rate cuts, it may be this boost in house prices proves to be temporary.Latest predictions for mortgage interest rates