This was the fifth consecutive increase in this measure and was slightly higher than the 1.2% rise recorded last month.
Prices in the three months to April were 2.0% higher than in the same three months a year earlier. This was the fourth consecutive rise in this annual measure with a pick-up from 1.1% in March, to the highest rate of increase since September 2010 (2.6%).
House prices increased by 1.1% in April. This followed rises of 0.5% in February and 0.4% in March.
Housing activity is still subdued. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 3% between February and March following two successive monthly falls. Overall, approvals in the first three months of 2013 were 1% lower than in the previous three months.
The relatively low level of mortgage payments in relation to income provides support for house prices. Mortgage payments for a new borrower remain significantly below the long-term average as a proportion of disposable earnings. Typical mortgage payments for a new borrower - both first-time buyers and homemovers – at the long-term average loan to value ratio, have nearly halved as a proportion of disposable earnings from a peak of 48% in 2007 Quarter 3 to 28% in 2013 Quarter 1. This is significantly below the average of 36% recorded since 1984.
Commenting, Martin Ellis, housing economist, said:
"House prices continue to pick up gradually. Prices in the three months to April 2013 were 1.3% higher than in the preceding three months, marking the fifth consecutive increase in house prices on this measure. The relatively low level of mortgage payments in relation to income continues to provide support for the market.
"Market activity, however, remains subdued by historical standards with the number of mortgage approvals for house purchases – a leading indicator of completed house sales – easing slightly in the first quarter of 2013, according to the latest industry-wide figures.
"Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of 2013."
