Another market analyst, this time one of the authors of the Halifax monthly index, says house prices will slow later this year - this time thanks to an increase in supply.
Stephen Noakes, Halifax's mortgages director, says there are signs of a revival in house building which should bring supply and demand into better balance and curb upwards pressure on prices over the medium and longer term."
Meanwhile Halifax's latest index shows that prices rose 3.9 per cent in May, breaking two months of falls. It also says prices are now 8.9 per cent higher than a year ago. The average house price in the UK is now £184,464, the highest figure since October 2007.
The increase brings the annual rate of growth close to the Nationwide's figure, released earlier this week, which is 11 per cent higher over the past year.
"Housing demand is still strong and continues to be supported by a strengthening economic recovery. Consumer confidence is being boosted by a rapidly improving labour market and low interest rates," says Noakes.
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Comments
[i]Meanwhile Halifaxs latest index shows that prices rose 3.9 per cent in May[/i]
Jeepers!
The new restrictions on the provision of mortgages will do more to 'cool' the market this year than anything else. It all starts with the first time buyers.
The London market has been slowing for weeks now, far fewer buyers registering and stock is starting to stick so buyers have some choice.