Property price increases across the Midlands are outstripping the rest of the country according to Rightmove’s house price index.
As of March 2016 the East Midlands saw prices rise by 2.1% and 5.7% on a monthly and annual basis, while West Midlands prices climbed by 2.1% month-on-month and 4.2% annually.
For the whole of the UK the price of property coming to market increased by 1.3% in March and 2.3% year-on-year, down from annual growth of 7.6% in March 2016.
Miles Shipside, Rightmove director and housing market analyst, said: “Since the start of the decade, the average March price rise has been 0.9%, so this month’s 1.3% uplift is an indicator of a shortage of suitable property for sale in many parts of the country, with strong demand for the right property at the right price.
“Since 2007 we’ve only once seen a larger rise than this in March, and we are also keeping pace with last year’s rise, which had the added momentum of investors looking to beat the Stamp Duty tax deadline of April 1.”
Annual price growth was more subdued in other areas, rising by 0.9% in London despite a 1.4% monthly increase.
Meanwhile prices fell by -1.1% in the North East and -0.6% in Wales in the year to March.
Russell Quirk, chief executive of eMoov, said: “Depite Rightmove’s best intentions to deliver transparent market analysis, the nature of their data being based on asking price and not sold price means it should only be viewed as a tentative toe dip into the state of the UK market at present.
“Today’s numbers may help to compound the current issue of a shortage of housing but this isn’t an anomaly that has only just surfaced.
“It has been rife for quite some time now and so this latest data would suggest the addition of a seasonal pickup as we head into the busiest time of the year. This heightened market activity, coupled with the ongoing stock shortage, is leading to a strong hike in prices.
“We’ve seen a lot of hesitation in the market of late, particularly amongst those in the likes of the South East who are worried about maximising their investment return.
“The reality is that in areas like the Midlands where prices aren’t as inflated, a more no nonense approach is benefitting homeowners as they proceed with their sale and see stronger, more natural price growth across the board as a result.”