The Office for National Statistics (ONS) has reported that UK house prices rose by 9.9% in the year to April 2014, up from 8.0% in the year to March 2014.

The main areas of growth were London (18.7%), the South East (8.9%) and the East (8.5%).

House price annual inflation was 10.4% in England, 3.3% in Wales, 4.8% in Scotland and 2.6% in Northern Ireland.
House prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth.

Excluding London and the South East, UK house prices increased by 6.3% in the 12 months to April 2014. On a seasonally adjusted basis, average house prices increased by 2.0% between March and April 2014.

In April 2014, prices paid by first-time buyers were 10.7% higher on average than in April 2013. For owner-occupiers (existing owners), prices increased by 9.5% for the same period.

Karen Bennett, sales and marketing director for commercial mortgages at Shawbrook Bank, said: “The continued strength of house prices shown by the latest ONS figures won’t come as a surprise for anyone in the industry.

“Again, house prices are driven by London and the South East, but it’s important not to forget the state of housing in the rest of the country. House prices in other regions are increasing at a slower rate but are rising and are a promising environment for experienced property investors who are looking to engage with a buoyant property market.

“It will be interesting to see how later in the year overall demand for housing and house prices are affected by tightening residential controls due to the MMR.”