English house prices rise as regions stumble

The figures from the Department for Communities and Local Government show annual house price increases in England were driven by a 4.9% rise in London, and increases in the South East and South West of 2.1 and 1.6% respectively.

The largest decreases in England, of 1.3%, were recorded in both the North West and in Yorkshire and Humber.

On a seasonally adjusted basis, UK house prices increased by 1.1% between March and April 2012.

Prices of new dwellings rose by 5.1% during the 12 months to April 2012 while the price of pre-owned dwellings increased by 1.1% in the same period.

In April 2012 prices paid by first-time buyers were 1.5% higher on average than in April 2011 while for existing owners prices increased by 1.4% for the same period.

In March 2012 some 43% of houses were bought by first-time buyers – ahead of the end of the stamp duty holiday.

This fell to 32% in April back in line with the longer term average.

The decrease in the proportion of first-time buyers had a differential impact on average house prices in some regions, where they decreased in March and then increased in April 2012.

Charles Haresnape, managing director of Aldermore Residential Mortgages, said: "More robust property prices in London and the South East are masking significant declines elsewhere in the country, particularly in Wales, Scotland and Northern Ireland.

“Uncertainty over house prices is having a dampening effect on the market and is making prospective house buyers nervous about committing to a house move at the moment.

“A lack of confidence is a key issue and will remain so until consumers feel that house prices have at least stabilised."

Meanwhile Ashley Alexander, managing director of MeetMyAgent.co.uk, said confidence was dependent on the London market.

He said: “If the London property market takes its foot off the pedal even for a second, the national picture will look far less rosy.

"The outlook for the rest of the year is a little foggy. The summer months are historically very quiet as families head off on their holidays, but activity levels could be lower than normal with the Euros and Olympics