Least affordable towns for first-time buyers

Sevenoaks Twickenham Richmond Windsor Kingston-upon-Thames Bishops Stortford Winchester Maidenhead St Albans London Source: Halifax

The cost of the average house in England and Wales rose to �121,881 between January and March 2002, 10.23% up on the same period last year, the Land Registry said in its latest report.

The figures confirm that the property market has recovered strongly from a slowdown during the final three months of 2001, blamed on the 11 September attacks.

In October to December 2001, the average house price rose 8.46% on the year, but fell 4% compared with the previous three-month period.

Authoritative

The latest Land Registry study tallies with recent surveys from mortgage lenders signalling that house prices are on the increase.

Most affordable towns for first-time buyers

Kirkcaldy, Scotland Bootle, North West Kilwinning, Scotland Fraserburgh, Scotland Lochgelly, Scotland Abertillery, Wales Irvine, Scotland Nelson, North West Glenrothes, Scotland Leven, Scotland Source: Halifax

Last week, the Nationwide Building Society said average UK house prices had risen by a record 3.4% in April.

The Halifax, the UK's biggest mortgage lender, pegged house price inflation for April at a more moderate 0.7%.

The Land Registry report, based on historical transactions, is seen as the most comprehensive survey of the UK property market.

London lags behind

The latest figures show that house price growth in London continues to lag behind the rest of England and Wales.

East Anglia came top of the house price inflation league, with property prices there climbing more than 20% on the year to �112,695.

The south west was next in line, racking up an 18.18% increase in housing costs.

But greater London, with house price growth of just 9.07%, was ranked bottom.

The disparity in growth rates suggests that the traditional gap between house prices in the capital and the regions may be narrowing.

Price disparity

However, London, where property prices have grown strongly for most of the last 10 years, remains by far the most expensive place to buy a home.

A house in the capital now costs an average of �214,257.

At the other end of the scale, a house in the north of England costs an average of just �68,278.

In another piece of research, the Halifax reports that Sevenoaks is the least affordable town in the UK for first-time buyers.

The research compares the cost of a new home with the buyer's borrowing capacity based on an average income multiple of 3.25 and a deposit of 5%.

The same report finds that Kirkcaldy in Scotland is the most affordable town.