According to new figures released by Rightmove, the average asking price for homes in the UK increased by 1% between December and January.
Typically, over this period of time – known as the Christmas period – properties tend to decrease in value due to a lack of movement in the property market over the festive season.
The popular property website, which has been recording data since 2002, stated that the average price of property increased by 1% between 9 December 2013 and 11 January 2014.
Rightmove’s data shows that over the last 10 years, property prices on average have fallen by 0.2% in this period.
Highlighting the demand for residential property for sale in the UK, Rightmove stated that there are signs of a rising supply of existing houses for sale but construction of new developments is required to keep up with the demand.
Rising property prices
The UK’s property market has seen much activity over the past year partly due to low interest rates and an increase in mortgage approvals.
An annual property price increase of 6.3% was recorded by Rightmove – the highest since November 2007. The recorded rise in property prices was 3 times greater than the rate of inflation.
The hike in prices has been attributed to the UK’s growing economy and government incentives which have helped boost the housing market.
The government’s Help to Buy and Funding for Lending Scheme have been accused of creating a ‘housing bubble’, which has prompted the Bank of England to announce the removal of incentives for mortgage lending. The Help to Buy scheme is still in operation.
It is thought that house prices will continue to grow throughout 2014, with many experts citing a lack of supply and a high demand for homes due to rising mortgage approvals as reasons for the growth.