Government figures show cooling house prices

The latest Department of Communities and Local Government (DCLG) figures show that house price growth fell back slightly in March.

The annual average house price increase to March was 10.9%, according to the DCLG figures, down from 11.8% in the UK. The average house price in the UK currently stands at £206,890.

House price growth in London outstripped the rest of the UK. In the capital, average house price inflation stands at 14.3%.

The drop in house price growth was slightly larger for first-time buyers. Growth in March stood at 10.8%, compared to 12.2% in February for those buying their first home. The average house price for a first home is £157,917.

Howard Archer, chief UK and European economist at Global Insight, claimed house prices may have peaked. He said: "We suspect that house prices will only gradually lose buoyancy over the coming months despite the fact the demand will be dampened by rising affordability pressures stemming from higher interest rates, modest real disposable income growth and elevated house prices."

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