Mortgages  

House prices just £30 off record

House prices just £30 off record

Jeremy Duncombe, director of Legal & General Mortgage Club, has welcomed news that house prices appear to be continuing their climb.

He was speaking after the Rightmove house price index showed the price of a property coming to market was up by 1 per cent – or nearly £3,000.

The index also showed that the average new-seller asking price was just £30 below the June 2014 record.

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Mr Duncombe said: “A modest rise in house prices this month, after February’s more dramatic climb, is welcome news for many aspiring homeowners, who may see this as a sign of a stabilising housing market.

“Looking at the long-term trend, it is clear that, overall, the housing market needs more balance, a situation that will remain until more houses are built to satisfy demand.”

In June 2014 the average price of a house coming to market reached an all-time high of £281,782.

Miles Shipside, director and housing market analyst at Rightmove, said the pension reforms could spark an increase in “granlords” buying up property.

Adviser view

Jane King, a mortgage adviser with London-based Ash Ridge Private Finance, said: “Unfortunately, a lot of people think they can take their pension pot and do what they like with it and have not considered the tax implications.

“Once it has had time to bed down I don’t think it will be popular, because elderly people don’t want the hassle of finding a property, maintaining it and looking for tenants.”