House prices are on the rise after the election matching the expectation of experts that predicted the demand would rise as supply still remains tight in the housing market. Halifax reported that the annual growth rate rose to 8.5% in April from the 8.1% for 12 months to March. The average house price grew from £193,328 to £196,412. The growth is credited to the improving economy, a decline in the jobless rate, and continued low interest rates in mortgage lending.

Martin Ellis, housing economist with Halifax, said “Housing demand is being supported by a number of factors including economic improvement, rising employment and low mortgage rates. At the same time, supply remains very tight with a general shortage of properties available for sale.

“This combination has kept house price growth steady in recent months with prices increasing by 2.2% to 2.6% on a quarterly basis and an annual rate of 8% to 9%.

“The resulting rise in the level of house prices in relation to earnings should constrain house price growth and activity over the remainder of the year.

“The annual rate of house price growth is forecast to end the year at 3% to 5%.”

Economist Howard Archer, chief UK and European economist with IHS Global Insight, said “We suspect that housing market activity is now turning around gradually after losing appreciable momentum from the early 2014 peak levels, and we see activity picking up modestly over the coming months.”

The housing market normally sees a boost in late spring as summer moves in and with continued growth in consumer confidence and further cheap borrowing opportunities demand should continue to rise throughout the summer on into autumn according to some experts.