House prices in March revealed a good increase for the month with the biggest month to month comparison increase in three years.  The average house price was boosted by the normal increases recorded for London.  House prices rose 0.3% from February, which was the largest recorded since March 2010 according to Hometrack.  The data also revealed in a year to year comparison that house prices were flat which was the first time the house prices have not fallen in an annual comparison since September 2010.

Last year the UK government launched the Funding for Lending scheme which has helped lenders to keep interest rates low keeping borrowing cheap for home buyers.  Only recently have critics begun to admit that the scheme is starting to make a difference for mortgage borrowers.  In the beginning, only those with the best credit and highest deposits benefitted from low interest rates.  Currently lenders are competing for attention from borrowers and offers are getting better across the board for all borrowers.

London’s house prices increased from February to March by 0.7% which was the highest percentage in the last three years.  Only one region in England and Wales recorded a decline in house prices and that was the north east.  All others showed an increase in their average house price.

Hometrack also revealed that demand from potential buyers had increase with a 19% increase in those registering with estate agents in the past two months.  There was also a 13% increase in the number of home sales.