Eight out of 10 regions in England and Wales recorded peak average house prices in March, according to the LSL Property Services house price index.
Meanwhile 39 of the 108 regions and counties set new peak prices – up from 26 the previous month.
The average house price increased to £301,278 in March – up 0.5 per cent month-on-month and 3.3 per cent annually.
The West Midlands became the region with the highest rate of annual house price growth at 4.8 per cent while but the south east, including Greater London, saw price growth continue to slow.
Oliver Blake, managing director of LSL divisions Your Move and Reeds Rains estate agents, said: “There is little in the short-to-medium term that will disrupt the market greatly, with interest rate increases seemingly on hold, mortgage supply and pricing remaining favourable and consumer confidence strong.
“In addition, first-time buyer numbers are up, not least as a consequence of government schemes and the Bank of Mum and Dad.
“However, with supply still tight, rising house prices remain a problem.
“We therefore cannot afford to overlook the ongoing housing shortage in the UK, which continues to dampen the hopes of many would-be homeowners.”
In February house price inflation had fallen to 3.1 per cent, down from 4.7 per cent in the previous month – the largest decline in a single month since December 2010.
This has now ticked up again but it still at its lowest level for several years.
The number of housing transactions in March was estimated at 78,500, a 26 per cent uplift on February’s total, which is in line with the average seasonal increase in March of most years.
Transactions in March were 36 per cent below their levels for the previous year – largely because of the surge in sales in 2016 before the buy-to-let stamp duty surcharge.
Of the 39 areas that recorded a new peak price, eight were in the south west, with seven in the east of England and the south east, five were in the West Midlands, with three each in the East Midlands and Wales.
The only two regions in England and Wales not to record peak average prices were Greater London and the north east.
The area with the highest house price outside Greater London was Windsor and Maidenhead, where a house will cost on average £568,875 but where house prices also fell by 3.4 per cent year-on-year.
Kensington and Chelsea recorded the highest prices in England and Wales overall, with an average of £1.9m, down 0.1 per cent on the previous year.
The area with the greatest level of annual house price inflation in England and Wales were in Haringey, where they increased by 19.6 per cent to £674,979 while outside London Merthyr Tydfil saw increases of 14.1 per cent.
damian.fantato@ft.com
