House prices pick up in February
House prices grew at their fastest pace in more than 18 months in February, as a further sign that the housing market is regaining its strength.
Property consultant Hometrack said its latest survey shows that prices rose 0.4% during February, bringing the average cost of a home to £161,700 although prices are still down 0.5% on a year earlier.
The news also marks the third consecutive month that prices have increased. In January Hometrack said prices rose 0.1% on the month and fell 1.04% on the year.
Richard Donnell, Hometrack director of research, said, "Prices are likely to continue to rise over the next month or so as a result of buyers returning to the market and supply remaining limited."
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Hometrack said the rise in prices came as more buyers entered the property market, with agents registering a 26% increase of buyers on their books in February, alongside a shortage of properties for sale.
The trend was most prevalent in the south, where the greatest imbalance between supply and demand currently exists with prices in London up 0.9% during the month on the back of a 35% increase in new buyers.
The average time taken to sell a property in these regions has also been falling, said Hometrack with the average home in London home now taking less than five weeks to sell, for the first time since July 2004.
