Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Despite falling slightly since last month, house prices have continued to improve since 2013 as a result of improved confidence among consumers and lenders. Homeowners across the UK will be glad to see that house price growth is no longer a one horse race: prices rose annually across all regions except Wales, suggesting nationwide recovery rather than regional improvements.
“As ever, London continues to drive this growth, with the biggest annual house price increase of 12.4%. However, it’s important to remember that the London property market is influenced by external factors such as foreign investment and does not necessarily reflect the rest of the country. While it’s clear that the shoots of recovery are now extending beyond the South, the national market still has room to grow.
“Moderate rather than unsustainable growth is a positive sign of economic recovery. However, consumers worried about rising house prices can take solace in the Bank of England’s active role in monitoring the property market. The introduction of MMR is also expected to cool any overenthusiastic growth as lenders adapt to new systems designed to cultivate responsible and sustainable lending.”