New figures on the housing market from the Office of the Deputy Prime Minister suggest annualised house price inflation fell sharply in March compared with the previous month.
The figures go against the grain set by announcements from Nationwide, Halifax and Rightmove in recent weeks that the traditional spring market is as strong as ever – a factor cited by the Bank of England in its decision to raise interest rates last week.
Prices are rising nationally at an average of just 7.8% on an annualised basis, the ODPM says, while prices in London are rising at an even lower rate of 4.9%, according to its latest figures.
Compare that with cash deposits, which in some instances are receiving rates of interest of about 6%.
Northern Ireland was the only home country to see annualised inflation increase, although, it, like Scotland, has average house prices less than half the value of those in London.
The inflation rate for first time buyers (FTBs) remains above the national average, the ODPM’s figures suggest, at a rate of 10% - down from 12% in February.
FTBs are paying on average £125,271 for their properties, while former owner-occupiers are paying an average of £180,833 for theirs.
House price inflation figures published by the ODPM are lower than for equivalent surveys because of the different methodology used: its index is more weighted towards higher priced properties, but price increases for such properties are running at lower rates than for middle- or lower-priced properties.IFAonline
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