One area of the UK housing market which is rebounding in quite a strong way is house prices. London in particular is showing up now with new figures suggesting the high values of capital city properties are once again moving upward. During the month of January, UK house prices increased at their fastest pace in one year, rising 0.6% and with it increasing the average to almost £298,000, according to data from Acadata and LSL.

London house prices grew in the month of January by 0.4%. This stopped a two month decline in erosion of property value.

As house prices are turning around and making a rebound, remortgage activity remains quite strong. Interest rates remain at levels which make lenders able to offer deals attractive to suit most financial situations. UK house owners are taking advantage of rates and saving hundreds, sometimes thousands off the cost of the monthly mortgage payment.

Economist Martin Ellis commented on the recent data, saying: “While it’s no longer unusual for houses to ‘earn’ more than the people living in them in some places, there are clearly local impacts.”

Ellis added: “Homeowners in these areas can build up large levels of equity quickly, but for potential buyers whose wages have failed to keep pace, the cost of buying a home has become more unaffordable.”

House price growth is currently outpacing wage growth in many areas of the UK. This has been confirmed in Halifax data. Home prices in more than 30% of the UK local authority districts have increased more than the average income of workers during the last two years. It is not only challenging for some already on the property ladder to stay there, but for first timers to gain access as well.