South driving small increase in house prices

Prices increased by 0.1 per cent on average across England and Wales in April, but they were either static or fell in the North, the Midlands and Wales, property analyst Hometrack said.

The general rises are expected to “flatten out” in coming months as worries over the economy impact on buyers’ confidence, with official figures showing last week that the UK is in a double-dip recession. The recent price rises have been due to strong demand from buyers, Hometrack said, with buyer registrations having increased by a quarter over the last three months amid the traditional spring boost to the market.

But this demand has already started to weaken as a stamp duty concession for first-time buyers ended last month, with new buyer registrations growing at a more subdued rate of 2.1 per cent in April, less than half of the 4.4 per cent increase recorded in March.

Richard Donnell, director of research at Hometrack, said: “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.”