House prices grew at their fastest pace for 12 months in February, with average prices increasing 0.6 per cent.
The average UK house price hit £297,832 due to strong performance in the east of England, new peak prices in Merseyside and Birmingham, and a return of growth in high value London property, according to Your Moves’ latest house price index.
House prices in February grew double the rate in January. However, annual house price inflation continued to fall for the twelfth straight month, dropping to 2.4 per cent, the lowest annual rate since 2013.
Reversing the trend seen in the last few months, the 11 most expensive of London’s 33 boroughs saw an average increase of 0.8 per cent in prices over January (double the average for London as a whole), rising by £7,473.
House price increases in London's cheapest boroughs were subdued. Only Havering (1.7 per cent) and the cheapest borough Barking and Dagenham (up 1.1 per cent), recorded growth above one per cent.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “It’s an encouraging start to 2017. We’ve seen the strongest house price growth in a year, the emergence of the promised Northern Powerhouse and the first tentative signs of a recovery in our highest priced properties in London.
“The good news too is that the number of first time buyers grew last year and house building was up – although home ownership is now at its lowest level in over three decades.”