‘House prices continue growth’

House price growth rose by some 10.9 per cent over the course of January, a new study reveals.

According to figures by the Department for Communities and Local Government (DCLG), property prices between December and January rose by about 2.1 per cent.

With the average cost of a home increasing by some £4,000 to £205,286, the news is likely to increase the potential costs of a homeowner loan for those looking to get on to the property ladder.

Global Insight chief economist Howard Archer said: "While higher interest rates and elevated house prices may be starting to increasingly weigh down on potential house buyers, an ongoing shortage of properties in many areas means that pricing power is still significantly in favour of the vendor."

He added that any slowing in house price growth is likely to be a "gradual process".

Northern Ireland was reported to have seen the strongest year-on-year growth, with prices up by 42.5 per cent from 2006.

Meanwhile, Scotland and Wales reported to have seen rises of 15.9 and 10.2 per cent respectively.

Research by the Consumer Credit Counselling Service suggested homeowners are to find the affordability of property squeezed as homeowner loans grow at a record rate.

The body claimed that the average homeowner loan is about £150,000, a rise of some 50 per cent over the last three years.

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