Average house price nears £200,000

House prices jumped by 1.6% month on month in April as the supply of homes for buyers to choose from remains tight, Halifax has reported.

The average UK property value grew by 8.5% in the year to April, accelerating from an annual growth rate of 8.1% in March.

The month-on-month increase in house prices is the strongest seen since January, and takes the typical property value to £196,412.

The annual rate of price growth has remained at between around 8%-9% since the start of the year, and it is still well below a peak of 10.2% year-on-year growth recorded last July when the housing market was particularly heated.

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Martin Ellis, a housing economist at 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 inflation steady in recent months."

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