New figures released by the Nationwide building have shown that house prices rose in the month of March for the first time in 18 months, since October 2007, which is good news for those in the financial industry.
Any price rise at all is a surprise for the industry at the moment, although the prices did rise by just 0.9 per cent compared with February. This now means that average UK house costs £150,946.
The Nationwide itself described the increase as a ‘surprise bounce’, however warned that this could be simply a blip and the market cannot yet be defined as having turned.
Nationwide’s chief economist, Fionnuala Early, stated:
“While the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached.”
She went on to say that the addition of money into the system from the Bank of England, also known as quantitative easing, is likely to take some time to have an impact and sustain a recovery in housing prices.