The UK housing market is set to experience more increases in the price of homes, according to economists close to the market. Many believe housing will see a surge before the end of the year as buyers and sellers are once again in alignment. The average home now sits only £1,200 below the peak days in 2007, before the financial crisis which affected so many. Remortgage is also an area of simmering activity, as the possibility of an adjustment in interest rates highlights the news of the day.

Matthew Pointon of Capital Economics, commented on the current state of house prices, saying: “The conditions are in place for further price gains this year.”

Pointon added: “The low point for the annual rate of house price inflation is now in sight.”

The average price of a home in the UK is now at £180,000. This is much nearer the pre-crisis high of slightly more than £181,000. Estimates are now for that number to be eclipsed by year’s end.

Reasons for a higher average home price range from simple heated competition among lenders, to low interest rates, to a settling period following a general election.

Jonathan Hopper, managing director of Garrington Property Finders, commented on home prices, saying it was “encouraging to see how well prices held up in April.”

Hopper added: “In the weeks since the election the market has quickly become much more free-flowing, with energised buyers and supply improving dramatically. Buyer demand and confidence are robust – both bode well for a strong summer moving season.”