Prices rise for 10 months in a row for the first time since 2016

House prices rose 1.1% in April, according to the Halifax House Price Index.

The rise means prices have increased for 10 months in the row, the longest run of successive monthly increases since 2016. House prices have risen £47,568 over the past two years with the average price hitting a record high of £286,079.

Russell Galley, managing director of Halifax, said an “imbalance between supply and demand persists”, with an insufficient number of new properties coming to the market to meet the needs of buyers.

However Galley said he expects prices to slow towards the end of the year due to the current economic environment.

He said: “The headwinds facing the wider economy cannot be ignored. The house price to income ratio is already at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.”

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The warnings came as the Bank of England yesterday increased its base rate to 1% as it seeks to curb rising inflation.

Figures from a separate house price index published by Nationwide last week suggested that house price growth slowed in April to 0.3%, the lowest monthly figure since last September.

Research consultancy Capital Economics has forecast prices to peak later this year before dropping 5% in 2023 and 2024.