ONS: UK house prices up 2.7% in March

UK house prices increased by 2.7 per cent in the 12 months to March 2013, rising from £229,000 at the end of March 2012 to £235,000.

The Office for National Statistics today reports average house prices increased by 0.4 per cent between February and March 2013, up from £233,000.

Annual price increases in England were driven by a 7.6 per cent rise in London and a 3.3 per cent increase in the South East. The average house price in London is £398,000 and £293,000 in the South East.

VanHan managing director Giles Hannah says: “The national average figures demonstrate a clear divide between London, the home counties and the UK as a whole. In London house prices are likely to continue on an upwards trend over the next three years with a severe lack of supply of new homes actually ready and completed.

“Buyers from Singapore and Hong Kong are snapping up properties off plan in new developments, particularly in Covent Garden. This is not a bubble, the market is simply rising with increased demand, a severe lack of supply and an improving economy in the UK, which shows no signs of slowing.”