House prices rise by 11.1 percent in a year

House prices have had their strongest growth in seven years and have risen by 11.1 percent in the last 12 months according to a report by the Nationwide.

Following the optimistic figures which show a rise in double figures for the second month running, incredibly this has sparked suggestions by some that the overheated housing market is cooling.

Nationwide's Chief Economist, Robert Gardner commented that it's too early to tell if the housing market is beginning a cooling trend.

With the average house price now reported as being £186,512, experts predict that the slowdown may be due to the new, tougher mortgage lending rules which Mr Gardner tells the Daily Mail "may take a few months to bed down".

When new lending rules came into force recently following a Mortgage Market Review, borrowers are now subject to 'stress tests' from the lender to ensure the amount they are borrowing will still be affordable should interest rates rise.

Mr Gardener also recognised the important role played by first time buyers in the current market, saying that they made up 48% of house purchase activity in March this year.

Critics of the controversial tax-payer backed Help To Buy Scheme claim that these are responsible for fuelling the demand for properties and driving up prices.

If you are buying or selling a property and need advice to budget, speak to our conveyancers on 0845 603 0708 or email answers@nationalsolicitors.com.

Smethwick Conveyancing Solicitors

West Midlands