UK house prices jump second month in a row

House prices in the UK jumped by 0.1 per cent in April, according to the latest Hometrack House Price Survey.

The report marks the second monthly rise in a row for property prices in the country, but April's increase was smaller than the 0.2 per cent recorded in March, as many regions around the UK either saw prices remain steady or slip lower. The strongest increases in property values occurred in London, where prices rose by 0.3 per cent, while South England saw smaller gains of 0.1 per cent.

Hometrack highlight the cause of rising prices as stronger demand, with registrations by new buyers growing by almost 25 per cent in the first quarter of 2012 – a trend boosted by the recent expiry of the stamp duty holiday as well as the standard seasonal uplift.

But these factors are losing their influence over time: registrations jumped by only 2.1 per cent in April, half that of March's 4.4 per cent.

Supply is still growing, though, with stock increasing by 4.8 per cent in April; higher than the 3.6 per cent recorded in March. Overall, supply of UK property has grown by 19 per cent in the last three months. If demand continues to wane and supply is still on the up, adds Property Talk Live , prices could flatten out again, especially with buyer confidence battered by the uncertainty of the Eurozone.