House prices in the UK increased by 0.6 per cent in April, according to figures from Hometrack on Monday, with buyers now paying the highest average percentage of asking prices in 12 years.

The increase, registered by the housing specialist's Monthly National Housing Survey, was unchanged over the previous month.

Demand, as registered by the change in new buyers registering with estate agents, was up 3.3% and continues to outpace supply -the change in volume of property listings - which rose by just 1.9%.

Buyers paid an average of 96.7% of asking prices in April, up from 96.2% in March and 95.8% in February. This was the highest level since September 2002.

Meanwhile, the average length of time that a house stays on the market shrunk to just 6.3 weeks, its lowest since June 2007, down from 7.9 and 8.0 in March and February, respectively.

London showing "price resistance"

However, Hometrack said that while London continues to register above-average growth, signs are beginning to emerge of "price resistance" in the capital.

This, Hometrack said, could "check the rate of house price appreciation in the coming months" in London, where prices grew by 0.8% in April.

What's more, the proportion of the asking price in London declined from 99.3% to 99% and the average time for a London home on the market actually increased from 2.7 to 3.4 weeks.

"While these changes indicate very strong market conditions, they suggest that buyers are starting to become less willing to bid up the cost of housing at recent rates," Hometrack said.

"Widespread media speculation over the sustainability of price increases in the London housing market is likely to be having an impact on sentiment."

BC

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