UK average house prices lifted 1.1% to £281,000 in the year to April, the second month in a row of rises, official data shows.
These increases in recent weeks, up from a 0.9% rise in March, follow eight months of annual falls in prices, according to the Office for National Statistics.
Across the nation, average house prices in England rose 0.6% to £298,000, lifted 0.4% in Wales to £208,000 and jumped 4.5% in Scotland to £190,000 in April.
In the first three months of the year, average house prices in Northern Ireland rose 4% to £178,000.
Jackson-Stops chairman Nick Leeming, says: “Today’s data reveals a modest spring bounce, with house prices increasing slightly across the UK.
“While slight, the price growth demonstrates that the UK’s housing market remains competitive, despite higher mortgage rates and economic headwinds.
“Buyers appear undeterred, likely spurred by lifestyle factors, job changes, and the desire to lock in purchases ahead of potential further price appreciation down the line.”
SPF Private Clients chief executive Mark Harris points out: “As expected, inflation has hit the 2% target, giving the Bank of England a further nudge to start reducing interest rates. If the Bank wants to be bold, that first reduction would come this month, but more likely it will be August.
“There is a sense that some buyers and sellers are waiting for the first rate reduction before taking action, so a cut this summer could really give the housing market a boost.
“Although swap rates were already falling before the publication of the latest inflation data, mortgage pricing is fairly flat with little movement up or down.
“There is a sense that things are on hold until the election is out of the way. Following a somewhat challenging first half of the year, there are hopes that a post-election bounce will lead to a more promising autumn for the housing market.”
MT Finance director of property lender Tomer Aboody adds: “Whereas we haven’t as yet hit the dizzy heights of the post-Covid era where houses were flying off the shelves due to stamp duty reforms, families needing more space and rock-bottom interest rates, we are seeing steady growth in values which illustrates confidence has returned to the market.
“Hopefully some interest rate cuts in the very near future will help push the market on even more.”
Foxtons chief sales officer Jean Jameson, says: “May has been a strong month for activity, as confidence in the sales market continues to grow.
“Viewings were up 12% and new properties coming to market were up 11% respectively, with little impact from the announcement of the general election towards the end of the month.
“The mortgage market seems to have settled and along with inflation levels coming down, there seems to be a new confidence in the sales market.”
