Recently released data from the UK housing market indicates house prices are still rising in many areas but more specifically in Cardiff, Liverpool, and Southampton. These three cities experienced greater than average house price growth in the first quarter, according to Hometrack. Buy to let investors were the main drivers of the latest surge. A new tax increase which took hold on April 1^st prompted many to purchase to avoid the extra cost.

Hometrack released data which also showed house price growth of more than 4% for the first quarter in Liverpool and London which was the highest of all cities across the country.

A typical spring bounce into higher levels of activity within the housing market is typical, but the increase in average house prices came as a bit of an anomaly due to the latest and newest tax.

Remortgage activity remains at a strong level even though fewer transactions have been completed in the last couple months compared with the start of the year. Attractive deals do exist and many lenders are still in heavy competition and are offering low interest rates along with low administration fees.

Richard Donnell of Hometrack commented on the latest data to surface regarding house prices, saying: "We believe house prices will continue to rise but a moderation in investor demand and greater caution in the run up to the EU referendum will limit further acceleration in prices.”

Donnell added: "Most likely the rate of growth will slow more rapidly in high-value, low-yielding cities such as London where prices will be more responsive to weaker investor demand."