House prices in record ‘spring bounce’

House prices have recorded their biggest "spring bounce" in eight years, fuelling hopes that the property market will be more robust in 2012 than last year. The typical property asking price rose to £236,939 in March, a 4.9pc rise over the first three months of this year and the largest first quarter increase since 2004, Rightmove said in the survey published on Monday.

London asking prices reached a new high of £455,159, up 7.3pc year-on-year, and the average asking price in Kensington and Chelsea has broken the £2 million barrier for the first time, with typical prices standing at £2,000,120 in the borough.

Strong interest from overseas buyers has helped to boost the London market, while all 10 regions in England and Wales recorded monthly price rises in March.

However, the Midlands, Wales and the North West have seen prices dip year-on-year and the West Midlands recorded the biggest annual fall, with asking prices dropping by 2.9pc to £181,925.

Miles Shipside, director of Rightmove, said: "The traditionally buoyant spring market has combined with a shortage of supply and brisk turnover of property.

"The result is another new record for average asking prices in the capital this month, representing an increase of nearly £600 a week over the last year and underlining London's continuing property market strength.".

Source: The Telegraph