The housing market continued to display its strength in April, with brokers left unsurprised by the house price indices for the month.
London & Country mortgage specialist David Hollingworth says: “The trend is continuing in much the same manner as in recent months.
“The market has kickstarted again from the start of the year so homebuyers' confidence must be up.
“Of course, it is a blow for first-time buyers who are hoping the market will go in the other direction. If we see an increase in the base rate, it may start to take a hold and calm things down but we will have to wait and see.”
Some brokers acknowledge that demand and supply is one reason for its buoyancy as well as little change in the base rate.
Ashley Law director Jock Cassidy says: “I am surprised that the house price market has stayed up for so long but this is because increases in the base rate have been so slight. It would take a 1 per cent increase at any one time to cause a plateau towards the end of the year, provided there is not a sudden rise in interest rates.
“It is tough for first-time buyers but these things happen in cycles and their time will come. Until then, share ownership or parental support is the way for them to make their mark.”