Lancaster house prices falling slightly

Figures from the Office for National Statistics show the average Lancaster house price in the year to March was £192,080 – a 0.4% decrease on February.

The picture was different from that across the north west, where prices increased by 2.5%.

The drop in Lancaster does not reverse the longer-term trend in the area, which has seen property prices in the area grow by 1.8% over the last year.

It means the area ranked 34th among the north west’s 35 local authorities for annual growth, with the average price in Lancaster rising by £3,300 over the past year.

The highest annual growth in the north west was in Blackburn with Darwen, where property prices increased on average by 16.9%.

At the other end of the scale, properties in Chorley gained 0.5% in value.

Across the UK, average house prices have jumped 6.4% over the past year, as the ending of a stamp duty holiday in England and Northern Ireland from April onwards sparked a stampede of homebuyers in the run-up.

The figures were released as statistics showed UK inflation surged to its highest level (3.5%) for more than a year last month.

Andrew Montlake, chief executive at Coreco mortgage brokers, said: "With inflation edging up sharply this morning, and mortgage rates likely to follow as expectations of further base rate cuts reduce, this could see average values start to retreat again.

"If prices do start to ease, they will only go so far as there is a fundamental lack of supply."

Jonathan Handford, managing director at estate agent group Fine and Country, said: "In the months ahead, inflation and still-elevated borrowing costs are likely to weigh on demand, particularly as affordability remains stretched across much of the country.

"That said, a period of softer or stabilising house prices may offer a welcome opportunity for first-time buyers who have been priced out in some areas of the country."