House prices record surprise January surge
House prices rose by 0.5% from December 2015 to January 2016 – the second highest rise over the Christmas/New Year period since 2007, Rightmove’s House Price Index has found.
In the first working week of 2016 Rightmove visits were up 21% while the number of available properties rose by 6.6% year-on-year.
It was better news for first-time buyers in January as first-timer house prices remained virtually at a standstill (0.1%).
With demand showing no signs of slowing down Jeremy Duncombe, director, Legal & General Mortgage Club, recommended for the government to help people downsize by introducing tax incentives.
He said: “This monthly increase in house prices is unusual for this time of year, and we expect house price inflation to climb further over the course of the year.
“The lack of supply is making the market more competitive and an expected increase in demand in the coming months is likely to exacerbate this issue.
“The government and housebuilders must work together to address this problem by building more properties of the right size and in the right places to accommodate those looking to buy.
“The government must also look to encourage more efficient use of current housing stock by helping more people to ‘rightsize’ through tax incentives and cuts in stamp duty.”