Hometrack: House prices up again

28 March 2006
House prices rose yet again in March, according to the latest figures from researchers Hometrack.

A rise of 0.5 per cent makes March the fourth consecutive month of a growth in house prices and the highest monthly rise in over 18 months.

The average house price in the UK is now placed at £162,500 thanks largely to a 1.1 per cent growth in London prices. Prices were 0.4 per cent higher in the South West, East Anglia and the South East, though growth in all other regions was said to be more limited.

House prices have continued to rise this year, with the Halifax last month saying that prices rose by 1.4 per cent in February and Nationwide putting the annual growth at 3.7 per cent.

Hometrack's director of research, Richard Donnell, cautiously welcomed the findings but said that a previous underperformance of the London market and a lack of new housing had helped drive the rise.

He added that as affordability levels "remain stretched" across the country, London would continue to diverge in growth from the rest of the nation for the near future.

The report also said that demand rose faster than supply with a seven per cent increase in buyers nationally compared to only a 3.7 per cent increase in properties for sale.

In addition to rising prices in March, the number of sellers getting their asking price rose from 94.2 per cent in February to 94.3 per cent.

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