Average house prices have risen by six per cent in a year, taking the cost of buying a home in England and Wales to 190,000.
The pace of growth in London continues to outstrip the rest of the country, with annual 14 per cent rises taking the average prices above 530,000, according to the latest Land Registry figures.
Other UK regions recording significant annual growth include the South-East, stretching from Berkshire to the Isle of Wight, and the East which takes in the areas from Hertfordshire to Norfolk, although house prices in these regions are less than half of those in the capital.
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Sophie Chick, of Savills estate agents residential research, says: “Both the South-East and East are well positioned to benefit from buyers looking for more for their money outside the capital, but still within easy commuting distance of central London.”
Research by Savills points to prices in the top two regions rising by about 25 per cent over the next four years, compared to a predicted 10 per cent in London.
The remaining seven regions recorded modest monthly price growth, led by 1.8 per cent price rises in the North-West between January and February.
However, across the North East, West Midlands and Wales regions, prices slightly dipped during the month. This is, in part, due to house prices rising faster than wages over the past few years, and buyers becoming more constrained by price as the affordability gap widens.
However a lack of supply and low mortgage rates help to keep the market to keep moving.
“An overall monthly dip in property prices in February disguises the fact that the majority of regions are experiencing striking growth. In the capital, annual growth has climbed to comfortably double the wider England and Wales average,” says David Brown, CEO of Marsh & Parsons.
“There have been a lot of stimulants spurring on the housing market this spring and there’s no denying there’s been a palpable buzz in the air.”
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