House prices up 5.8 per cent year-on-year

MoneyObserver

Commenting on the new figures, Nicholas Ayre, managing director of homebuying agency Home Fusion, says that buyers are beginning to feel more positive: ‘In the past they may have just sat on their hands and been reluctant to do anything, but now, with the macro view of the economy looking a lot more positive, people are wanting to get that property they have been waiting for and not get lost in the action.

‘The Nationwide figures show us that headline house prices are tracking the economy in its recovery and upward trend, annual growth at 5.8 per cent, is just keeping ahead of inflation, which is a healthy line of growth and where we should expect it to be.

‘Although wages have continued to decline in real terms, we are seeing a steady spread of loan-to-value mortgages, so buyers do not seem to be maxing out on finance and are keeping within affordability boundaries.’

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