Nationwide have released both their March 2014 and Q1 2014 House Price Indices and both report a continued strong market, with London pushing forward faster than the rest of the UK. Average UK house prices were up by 0.5% in March a 9.5% increase since March 2013.

Nationwide HPINationwide have released both their March 2014 and Q1 2014 House Price Indices and both report a continued strong market, with London pushing forward faster than the rest of the UK.

March 2014 HPI

  • Average UK house prices were up by 0.5% in March
  • 9.5% increase since March 2013
  • Average asking price in the UK now stands at £180,264
  • The average price is now just 3% below the peaks of 2007

Commenting on the figures, Robert Gardner,  Nationwides Chief Economist, said:

“There is little doubt that the recovery in the housing market is now firmly established, with activity levels picking up and house prices recording their fifteenth successive monthly increase in March.

“There are some tentative signs of moderation, with the monthly pace of price growth slowing to 0.4% in March down from 0.7% in February and 0.8% in January.
Nevertheless, viewed in annual terms, price growth is continuing to run at a robust pace, with the price of a typical home 9.5% higher than in March 2013.

“Record low mortgage rates, improved availability of credit and the brighter economic outlook are all leading to increased demand for housing. However, the upturn in the
supply side of the market continues to lag far behind, with the number of new homes being built in England still around 40% below pre-crisis levels (and this was already insufficient
to keep up with the increase in the number of households being formed)

Q1 2014 House Price Index

  • All UK regions saw annual price rises, yet most stay below the 2007 peaks
  • London house prices are now more than double that is seen in the rest of the UK, with annual price growth of 18% in Q1

The average UK house price in Q1 was £178,124, which is a 9.2% increase over the year and a 2.6% quarterly change.

London unsurprisingly is still the most expensive region of the UK with an average house price of £362,699. It also saw the strongest annual price change at 18.2%.

Northern Ireland is the least expensive region on the UK with an average price of £114,495, although this represents a 5.4% increase over the year.

Wales has the weakest annual increase of all the regions at 5.2%, albeit only just at the bottom of the table.

Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:

“The price of a typical UK house rose by 2.6% in Q1, after allowing for seasonal effects. Prices were up 9.2% compared with the same quarter of 2013. Although all regions saw annual house price growth in Q1, ten of the thirteen regions have yet to surpass their pre-crisis peaks. London, the Outer Metropolitan and the Outer South East are the exceptions.