UK house prices increased by 8.0% in the year to March 2014, down from 9.2% in the year to February 2014, according to the Office for National Statistics (ONS).
House price annual inflation was 8.5% in England, 4.9% in Wales, 0.8% in Scotland and 0.3% in Northern Ireland.
House prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth.
Annual house price increases in England were driven by rises in London (17.0%), the East (6.6%) and the South East (6.1%).
Excluding London and the South East, UK house prices increased by 4.7% in the 12 months to March 2014.
On a seasonally adjusted basis, average house prices fell by 0.5% between February and March 2014.
In March 2014, prices paid by first-time buyers were 10.0% higher on average than in March 2013. For owner-occupiers (existing owners), prices increased by 7.2% for the same period.
Andy Knee, chief executive of LMS, said: “With a sizzling heat wave sweeping the UK, the property market is following suit with hot competition for property far and wide pushing up prices across the country. Prices have risen by 8%, but if we eliminate London and the South East from the frame – house price growth is a more modest 4.7%.
“Average prices for new buyers shot up by 10% compared to the same month in 2013. For these aspiring buyers Help to Buy is needed now more than ever, as the challenge of getting on the ladder is not an easy feat by any stretch.
“The new mortgage regulations are clearly putting responsible lending and affordability at the front of mind, and quite correctly too. Restricted lending will naturally put a dampener on the market but Governor Carney’s recent remarks only threaten to fuel the hyperbole. What we need is simply more homes and house builders need to be further incentivised. It is this that should be the top of the Government’s ‘to do list’.”