Nationwide Building Society has stated that property prices in the UK have increased at their fastest pace since May 2010.
House prices increased by 9.5% in March when compared to March 2013. This marks the highest annual rise since May 2010, when prices increased by 9.8%.
Despite an impressive annual rise, monthly price increases were slightly down in March with gains recorded a 0.4%. This is slightly slower than the 0.7% rise posted in February.
Analysing house price increases on a quarterly level, Nationwide recorded a 9.2% increase in Q1 2014 when compared to the same time frame in 2013.
According to Nationwide, the average value of a house in the UK is now £180,264. This figure is the highest recorded since January 2008 however the figure is still 3% below the peaks recorded in 2007.
Property prices continue to grow
March marked the 15th consecutive month of rising house prices.
Great news for the UK’s property market, all regions recorded price increases with London, by no surprise, registering the fastest increase of 18.2%. Property prices in the capital are now 20% higher than the highs of 2007.
Manchester also recorded strong price gains with houses up by 18% over the past year. Brighton and Cambridge both experience a 14% price increase when compared to 2013.
However not all regions recorded highs with Sunderland recording increase of just 1%, and Coventry by 2%.
In its latest report, Nationwide said all UK regions saw house price growth for the third quarter in a row.
Supply vs demand
With mortgages now more accessible to first time buyers and rising rental costs, in many locations across the UK buying a property makes more financial sense.
The government’s Help to Buy scheme has also fuelled a new wave of first time buyers which has contributed to rising prices.
Despite the demand for residential property for sale in the UK, Nationwide stated that there are not enough properties available to satisfy demand.