House prices look set to carry on rising as demand outstrips supply

More than half of postcode districts across England and Wales recorded rising house prices in February in the most widespread growth seen for a decade, according to property analyst Hometrack.

Some 51.1 per cent of postcode districts saw prices increase, the best figure since the survey began in 2004.

Just 0.4 per cent of these areas saw prices fall.

Yorkshire and Humber saw a 0.2 per cent increase, compared to a national average of 0.7 per cent – the highest monthly rise since April 2007.

London and the South East saw the biggest uplifts at 1.1 per cent and 0.9 per cent respectively while Wales saw the lowest at 0.1 per cent. On average sellers are getting their asking price 95.8 per cent of the time, with the property on the market for around eight weeks.

Around two-fifths of buyers don’t have a home to sell, probably because they are first-time buyers or investors.

Hometrack said the supply of homes soared 11 per cent last month, but there was still a mismatch between supply and demand. Director of research Richard Donnell said: “The upward pressure on prices will only start to moderate if we see a sustained increase in supply or if demand were to weaken, which seems unlikely in the near term given the low level of mortgage rates.”