The average house price rose to £301,278 in March, up 0.5% month-on-month and 3.3% annually, Your Move has reported.

The West Midlands has become the region with the highest rate of annual house price growth at 4.8%, but the South East, including Greater London, sees price growth continuing to slow.

This is the first time that the West Midlands has taken the top spot in regional annual price growth since Your Move records began in January 1996, 21 years ago. Birmingham is currently seeing new peak prices, with annual increases of 7.8%, assisting the region to gain its number one position. By contrast, Greater London has fallen back into ninth position in terms of regional price change, one place ahead of the North East, which comes in last in the latest gures.

The number of housing transactions in March 2017 in England & Wales is estimated at 78,500. This is a 26% increase in sales on February’s total, which is in line with the average seasonal increase that takes place in March of most years.

Overall in February house price inflation fell to 3.1%, down from the 4.7% of the previous month, a decline of 1.6% in the month. This is the largest decline in a single month since December 2010, when a fall of 2.0% occurred.

Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “In England and Wales, house price inflation continues but at a relatively low, though still positive, level. The average annual rate of house price inflation was 3.3% in March, slightly up from the revised 3.1% seen in February. From May 2016 onward, there has been a relatively gentle and almost straight-line increase in house prices, despite the Brexit referendum in June 2016.

“There is little in the short-to-medium term that will disrupt the market greatly, with interest rate increases seemingly
on hold, mortgage supply and pricing remaining favourable and consumer confidence strong. In addition, first time buyer numbers are up, not least as a consequence of government schemes and the Bank of Mum and Dad.

“However, with supply still tight, rising house prices remain a problem. We therefore cannot afford to overlook the ongoing housing shortage in the UK, which continues to dampen the hopes of many would-be homeowners.

“RICS indicated in its February UK Residential Market Survey that ‘tight supply conditions’ across most regions, along
with flat sales in that month, resulted in ‘a further erosion of available stock for sale, with the average stock per surveyor just shy of a record low’. Our data shows that March has seen a pick up on this.”