General | 20 February 2012

The February house price surge

People looking to sell their home in February have increased asking prices by an average of 4.1%. It is understood that a greater belief in the UK housing market has prompted the greatest rise in almost a decade.

Although these figures were powered largely by the wealthier end of the market, there is other evidence to show that people’s household finances are improving across the board.

Independent, figures from the Markit Household Finance Survey led to its conclusion that "lower inflation perceptions and a corresponding weakening of the squeeze on the household spending power [are] lifting the gloom at the start of 2012".

Miles Shipside, commented in the Independent that: "After four years of constant economic uncertainty, it seems some property consumers have accepted current market conditions as the new norm," he said. "We're seeing a strong 'spring bounce' in asking prices this year, but the ball is still a lot smaller than it was before the credit crunch as market volumes are constrained.

"There is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding."