House prices have reached plateau

House prices rose by 0.9% in February and by 7.6% over the past year, analysis by Acadametrics reveals.

The research combined data from the FT House Price Index and the Land Registry.

Peter Williams, chairman of Acadametrics, says the results indicate that nationally house prices have reached a plateau.

He says: On an annual basis, prices in the South-West and East Anglia are above average at 8.7% and 8.2% respectively, while in London, prices have accelerated by 1.5% monthly and 11.1% annually.

London continues to have a large impact on the national figures and we note that price increases in some regions are now quite muted.

If London trends were to ripple out to other regions we would expect to see higher increases in the South-East, but for the moment at least, at 0.5% on a monthly basis, this is not the case.

In the last three months most of the regional markets in England and Wales have experienced an average growth rate that is either at or below the national rate of 7.5%, whilst the annual rate in London still stands at some 10.8%.

In the South-West the annual rate has risen to 8.6%.

We have yet to see the full impact of interest rate increases on the market because with many borrowers remortgaging and using fixed rate mortgages the effect takes time to work through the market.