House prices rising so quickly have caused worry for many experts as they have feared it is the beginning of a housing market bubble that would alter the growth of the economy.  However, there are those that have been trying to calm the worry and a recent one from Nationwide building society says that buyers will be the ones to calm the growing prices.  At some point a natural slowing will occur as buyers step back from the market and tell sellers that their prices are too high.

Graham Beale, Nationwide Chief Executive, said, “At some point buyers just start saying no.”

A natural slowing down is indeed likely to occur as house prices have been rising so quickly that home buyers are going to find them out of reach.  First time buyers need to have starter home prices but even with the Help to Buy scheme in place it will become difficult to afford a mortgage, especially with the new Mortgage Market Review in place.

The Office for National Statistics (ONS) revealed that property values have increased by 8% in the year to March leaving the average property at a value of £252,000.  The previous month had experienced a rise of 9.2%.

London has a large growth in house prices but other areas in the UK are growing at a more sustainable level.

Homeowners are enjoying the increase in house prices which in turn are building up equity that was sorely missed during the recession.  This has allowed many homeowners to take advantage of remortgages at lower levels and obtain more cash in their remortgage deal.  Interest rates on remortgage and mortgage deals still remain cheap and while affordability is present currently, the low interest rates will not likely be so this same time next year.