The annual price change now stands at 5.4%, bringing the average house price in England and Wales to pre-crash levels of £181,619.
However the number of property transactions has decreased over the last year. From January 2014 to April 2014 there was an average of 66,949 sales per month, dropping to 57,918 a year later.
London remains the region with the most significant annual price increase with a movement of 9.2%, while Yorkshire & The Humber saw the lowest annual price increase of 1.4%.
The North East experienced the greatest monthly price rise with a movement of 3.0%. Yorkshire & The Humber also saw the largest monthly price decrease with a fall of 0.9%.
The number of properties sold in England and Wales for over £1 million in April 2015 decreased by 22% to 874 from 1,114 in April 2014.
Duncan Kreeger, director of West One Loans, said:
“House prices have now returned to pre-crash levels, with the capital once more driving the market with the most significant rises. But while this is music to the ears of homeowners who will see the value of their asset rise, it is further frustration for first-time buyers who see their dreams of property ownership pushed further out of reach."
John Eastgate, Sales and Marketing Director of OneSavings Bank, commented:
“House prices continue to rise and are likely to continue to do so as long as the fundamental socio-economic drivers remain as they do. Whilst an eventual rise in interest rates may have the effect of reducing the rate of increase, without a sustainable increase in house building, the structural demand and supply imbalance means we are not going to see prices moderate in the longer-term.
With wage inflation also likely to continue to lag house price inflation, affordability will remain a critical factor for prospective owner occupiers and this will continue to support interest in the buy to let market, notwithstanding the tax changes announced in the Budget. The long term health of the housing market needs to be driven by measures to address supply rather than those that manage demand.”
Jonathan Hopper, managing director of Garrington Property Finders, added:
"While buyer demand and confidence are strong, much of the rise in prices is being driven by constrained supply. Transaction levels remain modest, and the number of properties changing hands in early 2015 was 19% lower than at the same time last year.
"The prime property market has been hit hard by the rise in the top rate of Stamp Duty - sales of homes costing over £1million have slumped by 22% over the same period. The Stamp Duty hike was supposed to gently apply the brakes to stop prime property market racing away - in the event its effect has been more of an emergency stop.
"While Britain's economic fundamentals remain sound, the property market is deeply sentiment-driven. And there is a growing sense among buyers that the current bargain basement interest rates won't last much longer. With many predicting that rates could rise by the end of the year, the stimulus this gives to buyers - and the window of opportunity it gives to sellers - is finite."
