The UK average house price rose by 9.7 per cent in the year to March 2010, compared with a rise of 7.3 per cent in the year to February. Between February and March there was a rise of 0.7 per cent in house prices compared with a fall of 1.3 per cent over the same period last year. The latest figures maintain the recent strong annual growth in prices.
Country
Annual house prices rose in all UK countries except Northern Ireland in the year to March 2010. Annual house price growth was 10.1 per cent in England, 7.2 per cent in Scotland and 8.1 per cent in Wales. In Northern Ireland prices fell by 6.9 per cent on average in the year to March.
Region
Average mix-adjusted house prices rose in six out of nine English regions between February and March (not seasonally adjusted). The largest increase was in the West Midlands (2.6 per cent) and the largest fall in the East of England (0.6 per cent).
All regions have seen an increase in house prices over the year to March. The largest being in London (15.6 per cent) and the smallest in the North West (5.1 per cent). There was also annual growth in the South East (11.3 per cent), South West (9.7 per cent), West Midlands (9.0 per cent), East of England (8.4 per cent), Yorkshire and the Humber (8.3 per cent), North East (5.7 per cent) and East Midlands (5.2 per cent).
Countries and Regions
Average mix-adjusted house prices in March 2010 were £212,266 in England, £165,106 in Scotland, £150,648 in Wales and £174,172 in Northern Ireland. The English region with the highest average house price in February remains London at £326,924. The lowest average price was in the North East at £139,186. In England the South West, the East, the South East and London all had average prices above the UK average.
Type of Buyer
Annual growth in UK house prices for first time buyers was 12.6 per cent in March compared to 9.3 per cent in February. There was an increase of 1.3 per cent in prices in the month to March 2010 compared to a fall of 1.7 per cent in the same period last year.
The annual house price growth rate for former owner occupiers was 8.6 per cent in March compared to 6.6 per cent in February. Between February and March the price of properties bought by former owner occupiers grew by 0.5 per cent compared to a fall of 1.2 per cent in the same period last year which is reflected in the annual growth.
The average house price paid by first time buyers in the UK in March was £151,749 and the average price paid by former owner occupiers was £238,794.
New and pre-owned dwellings
The UK annual rate of change in house prices for new dwellings grew from an average -4.8 per cent in February to 1.3 per cent in March.
There was an increase of 1.6 per cent between February and March in the price paid for new properties compared with a fall of -4.4 per cent in the same period last year which has resulted in an annual Increase in the price of new properties for the first time since November 2009.
The average price paid for a new property in the UK in March was £185,253 and the average price paid for a pre-owned property was £207,204.
Jonathan Moore, Director of easyroommate.co.uk comments:
"Homeowners and landlords might be popping the champagne corks at the news that property prices have rocketed up nearly 10% since March last year - but wannabe first-time buyers won't be toasting the news. For them, homebuying has become even more costly, with house prices for first-time buyers up 12.6% compared to March 2009.
"As prices rise it's getting more and more difficult for young people without large deposits - or the backing of the Royal Bank of Mum & Dad - to get a grasp on the first rung of the property ladder.
"Added to that, wage price inflation is practically zero, so homes are becoming ever less affordable. As a result, thousands of potential first-timers are remaining in rented accommodation. Flatsharing offers one of the best value renting options for potential first-timers, as they can share the monthly rent and bills, and pocket the savings for their first deposit."
