House prices in England and Wales have increased by 8.6 per cent to reach £333,331 over the year to February, the latest figures from e.Surv have shown.
The survey, previously known as the LSL index, recorded runaway growth for the South West with prices up by 15.3 per cent year on year to £335,842.
This compared to just 2.4 per cent annual growth in Greater London, where prices reached £639,459.
The North West and East Midlands both recorded annual growth of more than 11 per cent, while it was 10 per cent in the West Midlands and close behind in Wales and Yorkshire and the Humber.
The North East had growth of 8.6 per cent, followed by 8 per cent in the South East and 6.8 per cent in the East of England.
Turning back to the national figures, monthly price growth was 1.1 per cent in February, up from 1 per cent in January, but down slightly on December’s figure of 1.2 per cent.
It was the eighth consecutive month of price growth above 1 per cent.
Director Richard Sexton says: “While our survey recorded continued price rises in February, it suggests the market was continuing to soften ahead of the original deadline for the stamp duty holiday at the end of March.
“The government’s extension in the Budget will give hope not only to those currently trying to complete but possibly stoke expectations that activity may reignite.
“The extension though is largely about helping clear the backlog rather than adding further significant stimulus and our belief is that the success of the market for the rest of this year is inextricably linked to the health of the wider economy.
“In the Budget, the government underlined its commitment to the housing market with the announcement of its new mortgage guarantee scheme. ‘This is welcome because although mortgage approvals have reached record highs in recent months, raising a deposit continues to be a huge hurdle for many buyers to overcome.
“The government-guaranteed scheme will really help some potential buyers accelerate their home-buying plans and offer a helping hand to borrowers wanting to trade up.
“What we have seen over the past few months is that demand regionally has been fuelled by changing housing preferences as a result of the pandemic and the lockdowns of the last year.
“The regions have benefitted as city dwellers have opted to embrace working from home with far less commuting.
“The pandemic has changed what many people want in a property and, in many cases, they are leaving big cities for smaller towns or more rural areas.
“Lifestyle changes and the stamp duty change have worked together to underpin the price rises of the last year.”
