House prices in England and Wales rose by an annual 1.8 percent in April

Published 26th Apr 2010

House prices in England and Wales rose by an annual 1.8 percent in April, their fastest pace of increase since January 2008, property data company Hometrack said on Monday.


But monthly house price growth slowed to 0.2 percent in April from 0.3 percent in March on a non-seasonally adjusted basis, according to Hometrack's monthly survey of estimates of realistic selling prices from estate agents and surveyors.

This monthly rise was driven by a 0.6 percent increase in London, whereas prices in other regions were more typically flat or up by just 0.1 percent. Yorkshire and Humberside in northern England recorded a 0.1 percent price fall.

Hometrack said that the supply of property coming on to the market rose by 3.7 percent, outstripping a 1.0 percent increase in new buyers registering with agents.

"Fewer bargain properties on the market ... when set against a backdrop of sluggish economic growth and rising unemployment levels, have led to increased caution among buyers," Hometrack said, noting the May 6 election was also causing buyers to wait.

"The bounce in market confidence over 2009 was all about pent-up demand feeding back into an undersupplied market. However, the fundamental issues which have plagued the economy for some time still remain," added Hometrack's director of research, Richard Donnell.

Mortgage lenders Halifax and Nationwide have reported that property prices have risen almost 10 percent from a low hit around a year ago, but access to finance is still hard for many buyers after the credit crunch.

Nationwide reports April house price data on Thursday.

Source: ' Reuters '

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