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04 May 2006
House price inflation is at its highest level for 13 months, reveal new statistics.
At eight per cent, the annual rate of house price inflation is higher than it has been since March 2005, with house prices increasing by two per cent in April, according to the Halifax House Price Index.
Strong housing market activity was also confirmed by figures from the British Bankers' Association, which found that gross mortgage lending in March at £17.7 billion was the highest March total on record.
"On the face of it, mortgage lending was strong in March," commented BBA director of statistics David Dooks.
"Whilst partly reflecting the high number of working days in the month, the approvals numbers show that mortgage activity is running at a higher level than at this time last year, although the market is still somewhat short of the heady times of 2004."
The pick-up in housing market activity so far this year was expected, said Halifax and may increase again over the next few months, although it may decline later in the year due to a softening in the labour market and high levels of house prices in relation to earnings.
If a rise in house prices affects you and your credit commitments, order your credit report to find out where you stand financially.
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