The average price of a house climbed 0.6% to £179,935 in April, according to the latest figures from the Land Registry, bringing year-on-year house price growth to 9.1%, one of the highest annual increases in almost two years.
This rate is slightly less than the 1.3% the Registry recorded in March, indicating a slight slowdown, but it was price rises in London which really stood out, as the capital recorded a rise of 15.6% year-on-year, and 2.3% in April alone.
The region with the lowest annual price rise last month was the East Midlands, with an increase of 6%, and Yorkshire and the Humber recorded the largest negative price movement with a change of -1.1%, the report says.
‘The April data shows the current rate of increase for London house prices is over 6% per annum greater than that of England and Wales as a whole. This is the largest divergence in the last two years, when London lagged behind the rest of the country by approximately 6%,’ it continues. ‘The divide in annual growth between London and England and Wales has averaged 3.6% over the last six months.’
The average price of a house in Greater London now stands at £333,785, as the capital continues to drive house price growth in the South East, and indeed the rest of England, the report found.
Capital Economics said these findings confirm what other house price indices recorded in April: a gradual calming of the market. ‘Although these figures are not conclusive evidence of a slowdown, higher interest rates will stretch affordability even further in coming months, with market activity levels likely to be much softer by the end of the year,’ according to their assessment.