House prices increased by 0.3per cent

The 0.3per cent is the largest monthly increase in three years.

13:21 26 March 2013

According to Hometrack housing survey, the increased house prices in London last month, which soared by 0.7per cent, paved the way for the 0.3per cent rise of house prices across United Kingdom.

The 0.7per cent month-on-month increase in London, is considered the strongest uplift since February 2010. On the other hand, house prices across the rest of England and Wales increased in a fifth of postcodes. This is highest share in three years. However, North East saw house prices falling by 0.1per cent.

The study reveals that the two main reasons for the price increase is concerns over the crisis in Cyprus which can lead to more cash into the capital in coming months and lack of homes in the market.

Richard Donnel, the director of research at Hometrack, explained: “The general improvement in market sentiment on the back of rising prices will be welcomed across the housing industry.

“However, while scarcity of homes, support for lending and new housing will all act as a support to pricing levels, the problems of affordability and deposit levels remain impediments to a full-blown market recovery.”