House prices in the U.K. advanced at the fastest pace in three years in March, driven by a notable improvement in the capital city on higher property demand, a survey by property researcher Hometrack showed Monday.
House prices in England and Wales were up 0.3 percent in March from the prior month, the biggest increase since March 2010. On a yearly basis, prices remained flat in March.
In London, average values surged 0.7 percent month-on-month, which was also the biggest increase in 3 years. Only northeast registered a decline in prices.
According to Hometrack, demand jumped 19 percent over the last two months, while the number of homes for sales climbed 13 percent. As demand outstripped supply, house prices increased notably in March.
The positive performance by the housing market was underpinned by the Bank of England's Funding for Lending Scheme. This programme was launched in August last year to stimulate cheap bank financing to homebuyers and small businesses.
Further, measures announced by Chancellor George Osborne last week in his budget speech to support prospective homebuyers including mortgage guarantee lifted market confidence.
March house price data from property website Rightmove showed housing market gathering pace, with an increase in transaction volume and a continued rise in property asking prices.
Rightmove said the average property asking price rose 1.7 percent month-on-month, the highest ever new seller asking prices recorded for the month of March.
by RTT Staff Writer
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