According to a report by leading online property analytics firm, Hometrack, home prices in the U.K. rose for the first time in nine months in February due to increasing number of buyers in London and South England.
According to the report, the number of new home buyers registered with real estate agents increased by 14.3 percent in February. Prices rose by 0.3 percent in London with the number of new home buyers shooting up by 18.5 percent in the region. Supply of inventory also rose by 8.7 percent in February.
Home prices rose by 0.1 percent across Wales and England with 15 percent of the regional postcodes registering a hike in prices. Of these, 74 percent were based in London and the south-east England. Almost 48 percent of the markets were based in London alone.
"The impetus for improved market conditions and higher prices has been driven by London and the Home Counties of southern England where there is the greatest mismatch between supply and demand," Richard Donnell, director of research at Hometrack, said in a statement.
However, the increase was found only in the aforementioned regions. The northern areas recorded losses. Prices in the north-east regions fell 0.2 percent while slumping 0.1 percent in areas of Humberside, Yorkshire and the north-west regions. Monthly prices remained flat in the Midlands, East Anglia and the South West of the country.
It was also observed that home prices declined 0.1 percent on a year-on-year basis.
'Prices remain under downward pressure in Northern regions where the trend is tipped towards price falls," Donnell added.
Though, experts believe that demand and supply will continue to increase in the coming few months, the high rate of stamp duties could prove to be a decelerator.
Meanwhile, the government and major banks in the country are trying to boost investor and buyer confidence in the housing market. The "Funding for Lending" Scheme, introduced by the Bank of England has improved loan and mortgage activity in the country. However in January, the mortgage approvals took a blow since the launching of the scheme. The bad weather was blamed for the slow down.