The cost of buying a property has risen by as much as a tenth over the last year, according to the latest research.
Halifax’s House Price Index revealed prices in the quarter leading to March 2016 were 10.1 per cent higher than they were in the corresponding three months last year.
Homeowners who bought their house in March 2015 and have made enhancements, such as fitting bi-fold doors in Cheshire, renovating the kitchen or installing a conservatory, will have therefore increased the value of their property considerably during the last 12 months, with their home improvements boosting its worth even more.
Martin Ellis, Halifax housing economist, said there is an “acute” imbalance between supply and demand, adding: “This, together with continuing low interest rates and a healthy labour market, indicate that house price growth is set to remain robust.”
The index revealed house prices between January and March 2016 were also 2.9 per cent higher than during the previous quarter, and 2.6 per cent higher in March than in February.
According to Halifax, the average price of a home was £214,811 in March, an increase of £21,657 from March 2015 and £5,477 more than in February 2016.
Homebuyers who do get on the property ladder before prices go up even more could increase the value of their house by between £25,000 and £50,000 by making various improvements to it.
Confused.com recently reported 19 per cent of those who bought a renovation project added significant value to their property by making changes, such as installing a new bathroom, changing the carpets and fitting double-glazed windows.