House prices recorded an annual increase last month for the first time in more than a year, with South West prices up 1.3%, Nationwide has reported.
Although prices were flat month-on-month in March at £164,630 on average, they were up by 0.8% on a year ago, marking the first year-on-year rise since February last year.
Nationwide's study found huge variations in the performance of local housing markets, with prices up year-on-year by 15% in the London borough of Camden and in Cambridge, but down by 10% in Liverpool and Carlisle.
Outside of London the South West showed the strongest growth in house prices. London showed the best annual growth, with a 4.6% increase pushing average prices to a new high of £306,919 – beating their 2007 peak.
The capital city has enjoyed strong interest from wealthy overseas buyers and some analysts have said that the crisis in Cyprus is likely to drive more money into London as people hunt for a "safe haven" in which they can invest their cash.
Prices rose by 1.3% year-on-year in the South West, 0.7% in the South East and 0.5% and 0.4% in the West Midlands and East Midlands respectively.
However, prices in East Anglia dipped by 0.1% year-on-year and tumbled in several northern regions, with a 0.5% drop in Yorkshire and Humberside, 1.6% in the North and 1.8% in the North West. The report adds to evidence that Government efforts to unblock the housing market are having an impact.
Lenders and estate agents have been reporting uplifts in activity, mortgage availability has increased sharply and loan rates have been slashed since the Government launched its Funding for Lending scheme (FLS) last August.
House prices are likely to get a further boost from a multi-billion pound scheme called Help to Buy, unveiled in the Budget.
