Continued house price growth ‘could increase loan costs’

Potential first-time buyers may find the costs of their secured loans increased as a new study reveals house prices have risen by a record rate over the past month.

Figures released by Rightmove reveal that property prices increased by 3.6 per cent, or £8,000, over the course of March - the biggest rise in five years.

Commercial director Miles Shipside said: "As prices go higher, fewer buyers can afford to get on the ladder or trade up and that will restrain ongoing increases in many parts of the country.

"More affluent areas will remain the exception however."

The study revealed the average asking price for a property in England and Wales is now £236,490, some £31,000 higher than the same time last year.

A shortage in supply, high buyer demand and the traditional Easter period rise was attributed to the increase in prices.

Last week, research from the Royal Institution of Chartered Surveyors revealed property values rose for the 17th consecutive month over the course of March.

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