More joy on housing market as prices up

The housing market has shown further signs of a spring revival, with the West Midlands among the pacesetters, according to figures today.

Property website Rightmove said the average price of a UK property rose by 2.6 per cent over the past month, to £235,512, in a marked improvement of the 0.1 per cent increase the month before.

The regional breakdown showed that East Anglia and the West Midlands saw the greatest month-on-month rise in asking prices, up 4.9 per cent and 4.5 per cent re spectively.

However, asking prices fell in the North West, by 0.7 per cent, and only rose by 0.9 per cent in Yorkshire & Humberside.

The number of new properties coming on to the market rose sharply, with buyers enjoying the greatest choice since October last year.

The Government's stamp duty fillip for first-time buyers introduced last month for all properties under £250,000 also provided a boost.

The news comes after last week's survey data from the Royal Institution of Chartered Surveyors showed that selling activity soared to its highest level since May, 2007, in March.

But Rightmove warned that the potential for over-supply could see prices come under pressure later in the year.

Miles Shipside, of Rightmove, said: "With weather disruptions out of the way, more sellers are coming to market. Prices are up, but so is choice, and the two are not happy bedfellows in the longer term.

"This year more than ever the traditional spring seller window is a price-sensitive one. If asking prices continue to rise, all but the most popular locations are building themselves up for some of the gains to be lost later in the year."

Today's house price statistics show the average value of a property is now six per cent higher than a year ago.

The market stumbled at the turn of the year as freezing weather compounded the traditional winter slowdown. It raised concerns over the impact of a hung parliament, which it said could further threaten the tentative recovery.