On a monthly basis, house prices rose by 0.7% in March compared to February, which contrasts to a fall of 1.2% in the same period last year.
Meanwhile, UK house price increased by 1.8% year-on-year in March 2024, compared to -0.2% in February, according to the latest figures from the Office for National Statistics (ONS).
The ONS added that the average property value in the UK now stands at £283,000, after staying flat at £281,000 in February.
However, in England, house prices have gone up by 0.5% since February and the annual price rise of 1% takes the average property value to £299,000.
From a regional perspective, Yorkshire and the Humber had the greatest yearly growth at 5% followed by the North West at 3.8% and the North East at 3.2%.
London reported the largest annual drop in house prices at -3.4%, followed by the South East at -1.3%. All other regions reported positive growth upwards of 0.5%.
The report noted that in England the average house price for a buyer with a mortgage came to £309,000, which is 1.1% up on the prior year and 0.5% up on the previous month.
For a first-time buyer the average house price is £250,000, also a 1.1% increase year-on-year and 0.5% up on February.
In Wales, the average house price has increased by 0.9% since February and the annual house price growth came to 1.3%. The average property value is £214,000.
Turning to property transactions, the ONS noted residential properties with a value of £40,000 or greater was estimated at 84,000, which is 6.5% lower than a year ago.
It added that between February 2024 and March 2024, UK transactions increased by 1.4% on a seasonally adjusted basis.
House price rise shows confidence returning to the market
Tomer Aboody, director of property lender MT Finance, said it was “another positive month” in terms of house price growth which showed “confidence” was returning to the market, as inflation figures neared the Government’s 2% target.
He said: “This drop in inflation suggests that interest rates are going to come down and will make buyers and sellers more comfortable about transacting.
“With mortgage rates inevitably falling over the next few months, we are expecting a further boost for the housing market which will be welcomed by the Government ahead of a General Election.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “This relatively modest acceleration in house price increases, which includes mortgaged and cash sales, though a little dated shows how even anticipation of today’s drop in inflation is giving another boost to housing market activity.
“Confidence is such an important factor when it comes to home-buying decisions and there is no doubt that the cost of living too plays a huge part when buyers are deciding whether to take on further debt.
“On the ground, expectations are rising that mortgage rates are continuing on their journey south, even if they are not moving as far or as soon as many had expected.”
