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First-time Buyers

Annual house price growth rises by 4.4% – Nationwide

Paula John
Written By:
Paula John
Posted:
Updated:
28/01/2016

House price growth rose 0.3% in January, which means the annual growth figure remains steady at 4.4%.

Prices rose to an average of £196,829, according to figures from Nationwide’s House Price Index.

Nationwide’s chief economist Robert Gardner said growth has remained in a fairly narrow range between 3% and 5% since last summer.

“As we look ahead, the risks are skewed towards a modest acceleration in house price growth, at least at the national level,” he said.

Rising employment levels and a slight slow down in earnings growth has left regular wages rising at a ‘healthy level’, he said.

“With this trend expected to continue and with interest rates also likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen in the months ahead.”

Adrian Whittaker, sales director of New Street Mortgages, said: “Yet again these figures show an unseasonal increase in house prices resulting from a market that is characterised by rising demand and
limited supply.

Whittaker said increasing competition means the speed of a mortgage application is ‘ever more important’, as borrowers and advisers want to be confident that a lender has the systems in place to provide a fast and consistent lending process.

“The mortgage industry has been slow to keep up with new technology, and if we are to satisfy the demand for faster mortgage applications and adapt to the rising competitiveness of the market, it is crucial that as an industry we look to keep systems and processes up to date.”