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First rise in house prices for 20 months

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Prices rose 0.2% last month, according to a survey of 1,500 surveyors and agents by Hometrack

House prices rose in March for the first time in 20 months, partly helped by increased activity ahead of the ending of the first-time-buyer stamp duty holiday.

Prices rose 0.2% last month, according to a survey of 1,500 surveyors and agents by Hometrack, with London's 0.5% increase leading the way. This was the biggest monthly rise in the capital since April 2010, but elsewhere in the country the picture was mixed, with the midlands, the north and Wales showing declines.

Hometrack said increased demand and activity and a scarcity of housing for sale had helped drive the overall increase in March, and believed the trend would continue: "Looking ahead to the rest of the year, all the evidence points to a continuing firming in prices in the next few months as demand increases and supply remains suppressed.

"The divergence in the relative strength of the housing market in northern and southern England is set to remain."


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