House prices have been on the increase in London while other areas have declined.  March showed a change in that trend.  Despite the housing market being sluggish overall in the UK the London housing market has been improving.  The rise in London house prices has helped to counter out the losses in the average UK house price.  In March there was an increase in asking prices in all regions which maybe revealing a strengthening housing market. 

A recent report from Rightmove revealed that the average prices in London hit a new high in March.  House prices rose in London 1.3 per cent to £455,159 and the average house price across England and Wales rose 1.6 per cent to £236,939.  Due to the boost in house sales in March sellers became more confident and increased their asking price.  The increase amounted to a 5.9 per cent increase in Kensington and Chelsea.

Miles Shipside, a director with Rightmove, said, “The traditionally buoyant spring market has combined with a shortage of supply and brisk turnover of property.  Sellers again have the confidence and required level of funds to motivate them to trade up, though no doubt some are deciding to take advantage of the record prices and trade out.”

In a comparison with last year the Rightmove report revealed that house prices were up 2.2 per cent in England and Wales while the comparison to prices last year in London revealed a 7.3 per cent increase. 

The March values show that there could be a strengthening in the housing market or it could be a pay-off from the stamp duty holiday that will be ending on March 24.  A steady increase in house prices through April would reveal a new confidence from buyers.