House price growth has hit a two-year high of 1.8% as “confidence returns” to the market, compared with 0.3% in March 2019.
According to Home.co.uk’s March Asking Price Index, Scotland and Wales top the regional growth table with month-on-month price hikes of 1.7% and 1.5% respectively, followed by the North West and South West (both showing increases of 1.4%).
The study showed the supply of new sales instructions remains low across the UK (down 2% year-on-year) and this, combined with already low stock levels in much of the UK, is pushing up prices.
The total sales stock in England and Wales also decreased by 10.9% year-on-year.
The overall number of properties for sale in England and Wales is down by 11% year on year, with London being the worst with 19% less property on the market compared with last year.
Doug Shephard, director at Home.co.uk said: “Confidence among agents and vendors is high because they both know that supply is low relative to demand and therefore pricing is increasingly bullish.
“Whilst lending rates remain low and look set to go even lower, thanks to the wider economic malaise and market panic, British bricks and mortar will continue to be a highly attractive safe haven for investors.”
Other highlights of the report included the North West and Wales are currently the UK’s “best-performing” regions, both with an annualised rise of 4.3% and East of England remains the UK’s “worst performing” region but this month’s leap of 0.7% indicates confidence is returning rapidly.
The average asking price for the region is now a mere 0.7% lower than twelve months ago.