UK average house prices rose by 10.2% in the year to March 2021, the highest annual growth rate seen since August 2007, according to the ONS House Price Index.
This is up from the 9.2% increase seen in the year to February 2021.
Average house prices rose by the greatest margin in Wales, up 11% to £185,000, followed by a 10.6% uplift in Scotland to £167,000.
England noted a 10.2% increase to £275,000 and UK average house prices rose by 6% to £149,000 in Northern Ireland.
London continues to be the region with the lowest annual growth (3.7%) for the fourth consecutive month.
Miles Robinson, head of mortgages at Trussle, said: “We’re continuing to see house prices grow month-on-month, suggesting that the market remains buoyant and demand is high as a result of the stamp duty holiday.
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“With this in mind, it’s important for buyers in the home buying process to be aware that the increased demand has caused inflated prices.
“First-time buyers are now paying up to £73,000 more than last year to get on to the property ladder.
“This has also caused delays in completion times and it now takes up to 171 days to purchase a property in the UK.”
Cloe Atkinson, managing director of Mortgage Engine, added: “A year ago, activity in the property market remained almost entirely suspended as the UK continued to endure its first lockdown.
“In contrast, 2021 has so far proved a stellar year for house price growth. The busy start to this year reflects the success of various government measures to stimulate demand in the market, as well as the hard work carried out by the property industry to overcome the challenges of the pandemic and adapt to new ways of doing business.
“The mortgage industry has adopted new technology at an unprecedented rate, increasing efficiency and unlocking new ways of working.
Read about the UK Housing Market via our Specialist Residential & Buy to Let Division
“As the UK cautiously moves to relax its pandemic restrictions, its vital that the property sector doesn’t leave behind the spirit of innovation that’s carried it through the last year.
“Now is the time for the industry to increase its investment in tech and continue to evolve to meet the challenges of the post-pandemic period.”
Martin Stewart, director of London Money, added: “Even though the mania around the stamp duty holiday has waned, we are entrenched in a market with too many buyers chasing too few properties.
“We have witnessed a lot more chains falling down recently, maybe because buyers have offered on multiple properties in order to secure something, anything.
“We have also detected a significant stretching of the truth from prospective buyers whose stories about being “a cash buyer” or “chain-free” collapse quicker than a Jenga tower.”
By Jake Carter
Source: Mortgage Introducer
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