Land Registry data released for February revealed that house prices were on the rise from the previous month and were up 0.5%. Annual comparisons for the second month of the year showed an increase of 6.5%. This pushes the average house price value in England and Wales to £180,252.

With an average house price of £180,252 it is nearing the peak seen in November 2007 of £181,083.

Much of the increase is due as usual to the increase seen in the capital which was the largest rise in average house price value in the previous 12 months. London property value increased by 13.1%.

A spokesperson for the Land Registry commented that February’s increase followed a decrease from January which was a season expectation.

More recent data from the Centre for Economics and Business Research (CEBR) showed expectations for house prices to increase 1.5% for the year. This is a more conservative expectation than other predictions offered earlier in the year for a 3% to 5% increase.

The housing market may be ready to see a spring boost with indication from online property listers’ data showing increased interest in properties especially from first time buyers. With increased consumer confidence in the UK economy, low interest rates from lenders, a revision to the stamp duty, and programmes in place to help first time buyers with lower deposits to purchase, the first time buyers have ample opportunities to consider a move onto the property ladder.

Once a boost to the housing market does occur, lenders will no longer feel the need to be competitive for borrowers and cheap deals will begin to disappear. Then a slowdown should occur as interest rates increase and borrowers have to adjust to the idea of paying higher rates.