And for the first time, the average house price in the North has slipped past the £100,000 barrier, with Liverpool producing the biggest price hike across the country in March.
London in contrast, which continues to suffer under affordability constraints, has produced 6.3 per cent growth year-on-year, despite the fact house prices in the South remain twice as expensive as their equivalent in the North. Due to the stronger than expected start to the year across the country, Nationwide has revised up its countrywide forecast for the year from 9 per cent to 15 per cent, with London prices set to grow at around 10 per cent.
Alex Bannister, group economist at the Nationwide, said: “Kate Barker’s [housing review] proposals will take a considerable time to change the imbalance between supply and demand and we expect continued upward pressure on house prices.”
Unsurprisingly, the National Association of Estate Agents (NAEA) recorded a drop in the number of first-time buyers last month to 16 per cent from 20 per cent in February, but up from 6 per cent in November. The market is also showing signs of tightening in the seller’s favour, with sellers achieving almost 98 per cent of the asking price, compared with 96 per cent during 2003.
Estate agent confidence in the market also appears to be on the up, boosted by sustained low interest rates and higher salary multiples for loans.
Melfyn Williams, president of the NAEA, commented: “Recent reports of an imminent crash in the housing market have as much foundation as a house built on sand. These commentators are totally detached from the reality on the ground, where estate agents are united in predicting another year of strong price rises across the country.”
Top Authorities for house price growth (all over 40 per cent)
Liverpool
Halton
Carmarthenshire
Powys
Blackburn with Darwen
Bottom Authorities for house price growth (all less than 2 per cent)
Adur
Camden
Surrey Heath
Islington
Cambridge
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