Price inflation slows to 5.4pc

Sarah Davidson

March 16, 2015

From February prices have risen by 1.0% (+£2,748), the most subdued rise at this time of year for three years.

Rightmove suggested the UK general election in May is dampening down the housing market.

But Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The result of the general election is unlikely to have as much of an affect as many may think.

“For those who are looking to move house or remortgage, there is no reason to delay life changing plans by waiting to see who is returned in May.”

He added: “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.

“However, it is important to remember that prices have still increased by 5.4% over the last year.

“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.”

According to Rightmove agents are seeing more interest in typical first-time buyer properties from ‘grandlords’ ahead of the new pensions rules which come into play from April.

The number of first-timer properties being listed increased by 3.2% in March, while on an annual basis there has been a 7.6% increase in suitable homes.

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