The UK House Price Index (HPI) is a joint production by HM Land Registry, Land and Property Services Northern Ireland, Office for National Statistics and Registers of Scotland.
The main contribution to the increase in UK house prices came from England, where house prices increased by 4.0% over the year to March 2018, with the average price in England now £241,000. Wales saw house prices increase by 3.5% over the last 12 months to stand at £153,000. In Scotland, the average price increased by 6.7% over the year to stand at £146,000. The average price in Northern Ireland currently stands at £130,000, an increase of 4.2% over the year to Quarter 1 (Jan to Mar) 2018.
UK house prices grew by 4.2% in the year to March 2018, unchanged from the year to February 2018. However on breaking down this data to a country and regional level, Scotland showed the highest annual growth at 6.7%, down from 6.8% in the previous month. The second fastest growing region was the East of England at 5.8%. Interestingly the lowest annual growth was in London, which recorded negative annual price growth for the second consecutive month at -0.7%, down from -0.1% in the previous month.
The slowing in London seems to have matched faster growth in the rest of the country. The reasons for this increase in demand may correlate with the fall in demand in London from domestic buyers.
People looking to buy their first home have experienced several years of their wages not keeping pace with rises in the cost of living (what commentators refer to as stagnant real wage growth) and therefore may find other locations more affordable – both to buy a house, and the associated living costs once they move there. As a further incentive Chancellor Philip Hammond announced the abolition of SDLT for first-time buyers in the last Autumn Budget. Given the average house price in London is £472,000, this is more likely to benefit home-buyers outside of London, as the relief only applies to properties worth up to £300,000.
Source: https://www.ons.gov.uk/search?q=economy+2018
