Rising temperatures to fuel housing market activity

kensington & chelsea houses
Property in Kensington & Chelsea

House prices continue to rise Estate agents in London, south-east England and East Anglia are bracing themselves for a rush of enquiries after the Met Office predicted weekend temperatures to reach up to 18C.

The first taste of spring, which is being ushered in by tropical air drifts from the Caribbean, follows the release of data from the Halifax that shows house prices rose 8.3% last month compared with February 2014 and news that the Bank of England will continue to hold its base rate at 0.5%

The increase in sold values is being put down to ultra-low mortgage rates, stamp duty reform and a shortage of supply of homes for sale.

Although the rate of house price inflation is slowing when compared with January’s figures that showed an annual increase of 8.5%, Halifax housing economist Martin Ellis remains upbeat.

“The firming in price growth shown by the recent pick-up in the three month-on-three month comparison and indications of a modest rise in activity are likely to be due to a boost to housing demand as a result of increases in real earnings and spending power, further recent falls in mortgage rates and stamp duty changes,” he says.