UK house prices increased by 9.0% in the year to March 2016, up from 7.6% in the year to February 2016, the Office for National Statistics (ONS) has revealed.
The UK average ‘mix-adjusted’ house price in March 2016 was £292,000.
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 London and the South East, UK house prices increased by 5.9% in the 12 months to March 2016.
On a seasonally adjusted basis, average house prices increased by 2.5% between February 2016 and March 2016.
In March 2016, prices paid by first-time buyers were 9.7% higher on average than in March 2015.
For owner-occupiers (existing owners), prices increased by 8.7% for the same period.
Richard Sexton, director of chartered surveyor e.surv, said: “As summer beckons, prospective homebuyers are venturing further out from the confines of London in their search for a new home. Undeterred by rising house prices in the East and South East, buyers are increasingly exploring greener, leafier alternatives to the streets of the capital. The growing popularity of these areas as commuter havens is bringing a new energy into the local property markets, and driving demand.
“But whilst homebuyers may be looking further afield, financial concerns are following them. As supply problems cause prices to rise, the additional time needed to save for a deposit is delaying property ownership plans.
“But savers are receiving some help in the form of crucially low inflation, low interest rates, and new products from innovative lenders. With a variety of mortgage options available, first-timers are reaping the rewards. The proportion of small deposit lending rose to 19.1% of total home lending in April, up from 17.1% the previous month – suggesting that the strength of the lending market can only grow.”