Influx of house price growth expected in Spring

House prices will continue to surge over the spring period, according to a prediction based on deals that have already been agreed.

Prices are set to rise by 4.7% in April and 6.0% in May before slowing to 1.3% in June, reallymoving’s House Price Forecast predicted.

This should bring typical house prices to £389,712 in June.

With a base rate rise to 0.75% in March, making mortgages more expensive at a time when household finances are already stretched, the current run of house price growth is likely to slow later this year.

Rob Houghton, chief executive of reallymoving, said: “House price forecasts for the coming quarter suggest we’re heading into a period of strong price growth, but when taken in the wider context what we’re actually seeing are prices being inflated by a severe supply squeeze.

“This is forcing the market upwards, masking the impact of inflation and rising costs on household budgets which we would normally expect to rein in price growth.

“Having less money in their pockets will ultimately deter people from taking on more debt as they move up the ladder, and at some point in the near future this will slow house price growth.

“Much will depend on the volume of new listings we see coming onto the market and the speed at which lenders push up the price of fixed rate mortgages.”

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