The pace of house price rises slowed to 8 per cent for the year to March 2014, compared to a 9.2 per cent rise in the year to February, as highlighted in the latest data from the Office for National Statistics (ONS).
However, London prices continued to gallop ahead of other areas, with a house price rise of 17 per cent to March, bringing up the national average, which stood at 4.7 per cent excluding the capital.
House price annual inflation was 8.5 per cent in England, 4.9 per cent in Wales, 0.8 per cent in Scotland and 0.3 per cent in Northern Ireland.
In March 2014, first-time buyers paid 10 per cent more on average than in the same month last year, while owner-occupiers paid 7.2 per cent more.
Commenting on the figures, Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said: “It’s welcome news that house price growth is slowing after some dizzying rises in recent months. These have undoubtedly been fuelled by the surge in the London property market. Putting the capital and South East to one side leaves us with a far more measured and controlled upwards trend. Annual growth of 4.7 per cent will be welcome news to those who not so long ago were caught in an equity trap and the victims of a stagnant market.
“There are signs that the upwards momentum in the housing market is cooling slightly. As for the mortgage market, with the new affordability rules keeping lenders under a tight rein, decisions to offer credit are being taken with clear heads and a full and honest appraisal of borrowers’ finances.”
Richard Sexton, director of e.surv chartered surveyors, commented: “The government must do much more to support the supply side. It is vital that first-time buyers continue to be supported, and that we do not allow them to be priced out of the market. In order to safeguard the supply situation, we simply need to build more homes.”
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