Homeowners who are thinking of investing in installing a conservatory to their Cheshire home to add value to their property will be glad to hear house prices are rising already.
According to Halifax, values have increased by nine per cent since November 2014, growing by 1.4 per cent in the three months leading to November this year.
Halifax’s findings revealed the average house price in the UK to be £204,552, almost £16,000 higher than they were a year ago at £188,058, after an 8.1 per cent rise from November 2013.
Martin Ellis, Halifax housing economist, said: “Solid economic growth, rising real earnings and falls in already very low mortgage rates have combined to stimulate housing demand this year.”
He added the imbalance between supply and demand is causing “prices to rise at a robust rate”.
Indeed, the financial services provider revealed the housing supply reached a new low in the last quarter, with new instructions in October dropping for the ninth consecutive month and resulting in low housing stocks, according to the Royal Institution of Chartered Surveyors.
Halifax expects house price inflation in 2016 to be between four and six per cent, slowing as a result of little supply.
Despite housebuilding set to improve next year, which would add more properties to the housing stock, Mr Ellis concluded there will still be an imbalance between supply and demand.
He added this will contribute to the “upward pressure on house prices in 2016”, forcing values to increase further over the next 12 months.