House prices surge 2% in April
Britain's resurgent housing boom is showing no sign of abating with prices having jumped by their biggest margin in two years last month.
Halifax, the mortgage lending arm of HBOS, said its latest monthly survey showed prices increased by 2.0% in April, the fastest monthly rise in two years.
The jump in prices also brought the annual rate of increase up to a 13 month high at 8.0% while prices have also risen by 4.4% since the start of the year.
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"House price inflation may increase again over the next few months. We subsequently expect it to decline as the much stronger pattern of house price growth in the second half of 2005 should mean the growth rate moderates in 2006 H2," said Halifax.
The building society added that the strong economy, high levels of employment and low interest rates are all expected to continue supporting the housing market over the remainder of 2006.
However a slight softening in the jobs market and the continuing high level of house prices in relation to earnings should help to curb demand somewhat, says Halifax.
