UK property prices move upwards

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UK house prices rose 1.2% in April, the Department for Communities and Local Government (DCLG) survey says.

The DCLG index showed the average home cost nearly £210,000 in April.

As in previous months, Northern Ireland and London saw strong gains, with both areas seeing price rises above the national average.

The DCLG figures go against recent Halifax and Nationwide surveys which have both shown UK house price growth slowing a touch.

Bu Howard Archer, chief UK and European economist at Global Insight, pointed out that the DCLG figures have a built in time-lag as they are based on mortgage completions.

He added that more up-to-date surveys indicated that house prices are now beginning to lose momentum, following four interest rises since last summer.

"It does appear overall that the housing market is starting to come off the boil as demand is increasingly pressurised by the rising affordability pressures stemming from higher interest rates, modest real disposable income growth and elevated house prices," Mr Archer said.

Regional differences

Northern Ireland saw the strongest house price growth across the UK. Buyers from the Republic of Ireland and a peace dividend has helped fuel a booming market.

Over the past year, house prices in Northern Ireland have risen by 54%, the DCLG said.

London continued to drive growth in England, with house prices in the capital up 14% over the past year.

The average price of a home in the capital is now £320,000.

Elsewhere, Scotland has seen house price growth of nearly 18% over the past year, while Wales 9%.