Average house prices increased by 2.5% between February 2016 and March 2016, confirming the surge in activity prior to the stamp duty rise in April.
House price annual inflation was 10.1% in England, 2.1% in Wales, -6.1% in Scotland and 6.4% in Northern Ireland.
Annual house price increases in England were driven by an annual increase in London (13.0%), the South East (12.2%) and the East of England (12.1%). Excluding these regions, UK house prices increased by 5.9% in the 12 months to March 2016.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented:
“Given that these figures cover the period leading up to the buy-to-let stamp duty rise, it’s no surprise that they show another strong monthly increase in house prices. However, even without this surge in buy-to-let activity, house prices are still increasing annually at a rate that sits well above any rise in average earnings, making our housing market even less affordable as each month goes by."
Jeremy Leaf, former RICS chairman and north London estate agent, added:
"We might have expected the house-price increases to be higher bearing in mind the surge in activity prior to the stamp duty hike in April. However, this is likely to be the last big rise for a while as more realism enters the market, although a shortage of listings and low transaction levels may underpin house price increases in future.
"People are nervous: there are short-term concerns about the market but longer-term fears about the strength of the economy. Brexit is a bit of a smokescreen - the strength of the economy is a bigger issue. While in the suburbs and outside the centre of London the housing industry is still confident, in the centre of London where there is oversupply and a lot of cranes, they are not."
