New figures from the ONS reveal that UK house prices rose by 2.6 per cent in the year to April, down from a 2.7 rise in the year to March (release).
The rise in London was the most pronounced, where values jumped 6.0 per cent. If the London and South East are stripped out, the UK house price rise is just 1.4 per cent.
Howard Archer of IHS Global Insight:
A 0.4% rise in house prices in April reported by the Office for National Statistics ties in with our view that house prices will trend up moderately over the rest of 2013 as activity picks up from currently still modest levels. It is notable that the rise in house prices is currently being inflated by the increases in London.
Survey evidence for May suggests that the rate of housing market activity may be starting to pick up more markedly, helped by improving consumer confidence and elevated employment, as well as the Funding for Lending Scheme and the first stage of the Help to Buy initiative.
A shortage of new properties for sale could provide support to house prices in some areas, notably London and the South East