House prices in the first three months of 2013 were 1.2% higher than in the final three months of 2012. This was the fourth successive increase in this measure.
Prices in the three months to March were 1.1% higher than in the first months of 2012.This was the third consecutive rise in this annual measure.
House prices increased by 0.2% in March. This followed a 0.5% rise in February.
Activity increases further. Home sales increased by 5% between January and February on a seasonally adjusted basis, according to the latest industry figures. Sales in February,at 85,710, were 10% higher than in February 2012.
The number of mortgage approvals for house purchases – a leading indicator of completed house sales – however, fell by 5% between January and February to its lowest level since September 2012.
Commenting, Martin Ellis, housing economist, said:
"The housing market continues to show signs of modest improvement. Prices in the first three months of 2013 were 1.2% higher than in the preceding quarter (fourth consecutive increase). Prices were 1.1% higher than in the first three months of 2012. House sales also continued to rise, 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 this year. Overall, we expect to see a modest increase in UK house prices during 2013."
Jonathan Samuels, CEO of Dragonfly Property Finance, comments:
"Prices continue to nudge forward and yet the economy, and consumer confidence, stand still. There is an incongruous momentum in the market. This is highlighted by the fact prices in the first quarter were 1.2% higher than in the fourth quarter of last year.
"Despite the positive signs that are emerging, and despite the launch of Help to Buy and the Funding for Lending scheme, 2013 will likely be another year of low transaction levels and high uncertainty for the UK's property market.
"In certain prime areas, largely in the capital, you feel the strength of demand can justify the increase in prices. In many areas of the UK, price rises seem altogether out of sync with economic reality."
