Property market ’shows signs of recovery’

A new study has indicated that property prices are rising.

Research conducted by team Association reveals that house prices over the course of March rose by 0.2 per cent to £221,771, which could increase secured loan costs for many consumers.

Communications director Alan Kirkman said: "The knock on effects of the recent increases in mortgage repayments combined with continuing utility bill price hikes did initially slow the market down, however it seems to be now recovering."

The survey also revealed housing supply increased by 11 per cent during March.

However, Mr Kirkman warned that in the previous 12-month period, housing supply across the country has fallen by ten per cent.

This shortage of supply, along with rising interest rates, has been reported by economists to be a factor in increasing property prices over recent months, which has caused a rise in home loan costs.

Meanwhile, the British Bankers’ Association suggested increases to the base rate have curbed mortgage demand as the amount of money issued via Home Loans fell in March.

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