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UK property prices continue to gain

LONDON — Housing prices in the United Kingdom last month increased for a 14th consecutive month, the longest run of gains in almost seven years, as momentum spread across the country.

LONDON — Housing prices in the United Kingdom last month increased for a 14th consecutive month, the longest run of gains in almost seven years, as momentum spread across the country.

Values in England and Wales rose 0.6 per cent from February, while prices in London continued their relentless gain, climbing 0.7 per cent.

Record-low borrowing costs and a government incentive plan have spurred concern that the UK housing market risks overheating.

Financial stability officials from the Bank of England (BoE) said last week there was increasing momentum in the market and pledged to take more action if needed.

“Half of the country registered a price increase in March for a second month in a row,” said Mr Richard Donnell, Director of Research at Hometrack. “The real drivers of higher house prices are record-low mortgage rates and strong demand from first-time buyers and investors who have no property to sell.”

Nationally, prices rose 5.7 per cent last month from a year earlier, and the annual rate of growth was positive across all regions for the first time since September 2007, Hometrack said. The proportion of sellers achieving their asking price was 96.2 per cent last month, the highest since 2004. In London, the proportion was 99.3 per cent.

BoE officials adopted measures to restrain housing prices by ending mortgage incentives under its Funding for Lending Scheme in November.

While the Financial Policy Committee said this month it would “remain vigilant”, it also noted that a number of indicators remained below their long-run average levels. BLOOMBERG

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