The first quarter of the year saw a 2.6% growth in house prices compared to the final quarter of 2014.
An even larger rise was registered with property prices 8.1% higher than the same period of 2014. The increase in house value continues to spark home sales as they improved for the second successive month with a 2.5% increase in February in relation to January.Consequently the number of mortgage approvals for house purchases rose for a third consecutive month, resulting in a 2% increase from the previous three months to February.
The number of new homes on the market continues to decline with the drought in housing supply ensuring there is plenty of competition for each property. However, house price optimism bounced back in February, with a decline in inflation and potential improving interest rates boosting confidence in the market, according to the Halifax Housing Market Confidence Tracker.
This reassurance has been reflected on both sides of the market, with both buyers and sellers sentiment growing to their highest ever levels on record.