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House prices rise in April

House prices rise in April

Category: Mortgages

Updated: 30/04/2012
First Published: 30/04/2012

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House prices increased for the second month in a row in April, although there is evidence of a North/South divide.

Prices rose by 0.1% in April, having inched up by 0.2% in March, figures from Hometrack have revealed.

The impetus for price rises over the last two months has been higher demand, as new buyer registrations over the last three months have grown almost 25%.

The eye-catching rise has come about because of a combination of the usual seasonal uplift in demand together with the added impetus from the recent stamp duty holiday.

However, the impact of these short-term drivers of housing demand is starting to dissipate. New buyer registrations grew by just 2.1% over April, half the level recorded in March (4.4%).

Indicators continue to point to a divide between markets in and close to London and those further afield.

The strongest price rises over the month were recorded in London (+0.3%), with small gains (+0.1%) across the regions of southern England , while house prices elsewhere were either static or falling.

"Looking at recent years, confidence in the housing market has led to a boost in supply and this is what we are experiencing now," said Richard Donnell, director of research at Hometrack.

"However, the short to medium-term outlook for prices hinges on the outlook for demand.

"Conflicting reports over the strength of the economy and renewed fears over the prospects for the Eurozone could over the coming months, impact on buyer confidence.

"As a result, we expect price rises to flatten out as we move into the summer."

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