The latest FT House Price Index, updated with the most recent monthly data from the Land Registry, shows that house prices rose by 0.7% in March and by 8.1% over the past 12 months We calculate the FT House Price Index, on a seasonally and mix adjusted basis, as follows: House Price Index Monthly Change % Annual Change %
September 2006 £207,464 211.2 0.8 7.4
October 2006 £209,446 213.2 1.0 7.7
November 2006 £210,787 214.6 0.6 7.9
December 2006 £212,464 216.3 0.8 7.8
January 2007 £213,759 217.6 0.6 7.9
February 2007 £215,638 219.5 0.9 8.0
March 2007 £217,076 221.0 0.7 8.1
COMMENTARY BY PETER WILLIAMS
. Dr Peter Williams, Chairman of Acadametrics, comments,
“Monthly house price growth at 0.7% and annual growth at 8.1% are both in line with our results over the last four months. They continue to indicate that, nationally, house price increases have slowed and flattened out, a view we have offered for a number of months and with which other indices now seem to be agreeing. At a regional level, using a three month average to smooth volatility, the annual rate of price increases in the South West and East Anglia at 8.5% are just above average whilst, in London, the rate has accelerated to 12.2%.
“London continues to have a large impact on the national figures but it is a market driven by a wider range of factors than elsewhere. Excluding London, our annual increase would be 6.9%, rather than 8.1%. In fact, price increases in some regions are now quite muted and, on a monthly basis, are showing little change.
“With the effects of past interest rate increases still working their way through the market and with the continuing threat of further interest rate increases, we expect to see the market remaining moderately subdued. Consumer confidence remains low, albeit it has slightly improved.
“Transaction numbers do not seem to be indicating any great rush to put homes on the market before the 1st June 2007 introduction of compulsory home information packs and the extra costs this will impose on sellers, and we must await to see whether, after this date, a shortfall in supply will exist. “In our view, the divergence between indices in terms of both trend and aggregate continues to be a source of concern, especially given the close scrutiny the housing market is now receiving from the MPC. It is vital that market assessments are as accurate as possible.”

REGIONAL TRENDS
The national index has risen by 0.7% in March and by 8.1% in the year. The annual rate of growth at a regional level, averaged over the last three months, is shown in the chart below.

The averaged annual growth in London (12.2%) still far exceeds other regions as the chart shows. In rank order, the southern regions - South West (8.5%), East Anglia (8.5%) and South East (7.7%) - lead the way outside of London. The lowest growth was recorded by the North (5.7%), the East Midlands (5.6%), and the West Midlands (4.7%).

Taking monthly fluctuations into account the overall pattern seems to be that prices are moving in different directions on a regional basis with, for example, London, the South West and the East Midlands on an upward trajectory, while Wales, the West Midlands and the North are falling.

Annual Growth over last three months4.75.65.76.26.66.67.78.08.58.512.20.02.04.06.08.010.012.014.0West MidlandsEast MidlandsNorthYorks & HumberWalesNorth WestSouth EastALL REGIONSouth WestEast AngliaGreater London

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