House price growth remains well below the average rises seen last year despite increasing by 5.8 per cent in February.
The annual growth rate was up from 5.3 per cent in January but significantly below the 7.3 per cent average figure recorded in 2016, according to latest UK House Price Index from the Office for National Statistics (ONS).
England saw the steepest gain in prices over the year to February 2017 (6.8 per cent), with Northern Ireland seeing growth of 5.7 per cent, Scotland 3.1 per cent and Wales 1.8 per cent.
The average UK house price was £218,000 in February 2017 - £12,000 higher than in February 2016 and £2,000 higher than last month.
London remained the region with the most expensive prices, with the average property costing £475,000 – down slightly from January’s £479,000.
But the highest annual growth was seen in the east of England, where prices rose by 10.3 per cent in the year to February 2017.
Jeremy Duncombe, director, Legal & General Mortgage Club, commented: “It might be over two months since the government announced its Housing White Paper, but as these figures show, house prices are continuing to rise at a rate that is only widening the affordability gap.
“Supply and demand remains the key cause of the housing crisis, and it will take time for the government’s measures to have an effect.
“There is no quick fix, but by beginning the process of building thousands of new homes to deliver on the promises of the Housing White Paper, we can begin the road to a fairer market that works for everyone. It will be interesting to hear the housing minister’s thoughts on the white paper when he is questioned in Parliament later this month.”
Nicholas Finn, executive director of Garrington Property Finders, added: “As ever the market is split between extremes. While there is a lot of competition for mid-priced properties - where there’s simply not enough stock to go around - at the top end of the market, buyers are increasingly able to push for and get big discounts.
“With consumer price inflation holding steady in March, the Bank of England will continue to delay any interest rate rise for as long as possible, leaving the way clear for the property market to continue its slow upward progress.
“These are positive numbers from the housing market, and while one swallow does not a summer make, it could be the start of the spring market.”
simon.allin@ft.com
