House prices up 1.8% year-on-year, says ONS

House prices were up 1.8% year-on-year in March, according to official figures released today.

The latest UK House Price Index from the Office for National Statistics shows the average house price across the United Kingdom was £283,000, up from £278,000 in March the previous year.

The figures show higher rises in Scotland (6.7%) and Northern Ireland (4%), compared to Wales (1.3%) and England (1%).

The figures also show prices are 0.7% up on February.

Iain McKenzie, chief executive of estate agents’ group The Guild of Property Professionals said: “Another month of growth for house prices will be welcomed by sellers who were concerned this time last year that their home had lost significant value.

“First-time buyers may be worried that any rise in prices will make the dream of homeownership further out of reach. However, it should be reassuring that if you are in a position to buy now, it is less likely that your home will drop in value after you sign on the dotted line.”

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The figures are the latest sign of an improving housing market.

The Royal Institution of Chartered Surveyors’ (RICS’) March 2024 UK Residential Market Survey reported an increase in buyer demand for the third successive month. This is the largest increase in their buyer demand series since February 2022.

Rightmove’s latest house price index earlier this week showed prices are 0.6% up in May year-on-year.

The ONS figures come as UK inflation as measured by the consumer price index fell to 2.3% in the latest figures released today. This is the lowest it has been for three years.