UK landlords’ capital growth has enjoyed another boom, according to a lender’s recent house price index.

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The index found that average UK house prices increased by 1.4 per cent in March and the biggest single month increase in prices for six months as the UK average house price now stands at £282,753.

Since the pandemic surfaced two years ago, house prices have shot up by an average £43,577.

The managing director of the lender Russell Galley, says: “With 2021’s strong momentum continuing into the beginning of this year, the annual rate of house price inflation (11.0 per cent) continues to track around its highest level since mid-2007. The new record price of £282,753 is up some £28,113 on a year ago, not far off average UK earnings over the same period (£28,860).

“The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on households’ finances. Although there is some recent evidence of more homes coming onto the market, the fundamental issue remains that too many buyers are chasing too few properties.

“The effect on house prices makes it increasingly difficult for first-time buyers looking to make their first step onto the ladder, but also challenges homemovers who face ever bigger leaps to move up the rungs to a larger property.

“However, in the long-term we know the performance of the housing market remains inextricably linked to the health of the wider economy. There is no doubt that households face a significant squeeze on real earnings, and the difficulty for policy-makers in needing to support the economy yet contain inflation is now even more acute because of the impact of the war in Ukraine.

“Buyers are therefore dealing with the prospect of higher interest rates and a higher cost of living. With affordability metrics already extremely stretched, these factors should lead to a slowdown in house price inflation over the next year.”

South west England has jumped above Wales in the UK’s highest annual rise in house prices by as much as14.6 per cent the region’s highest annual rise since way back in September 2004, with a record average house price of £298,162.

Although Wales has lost top spot, which is a ‘first’ in losing the UK’s biggest annual capital growth mantle, overall house price rises across the UK have performed strongly at 14.1 per cent. Wales’s average house price now stands at  £211,942 which is again another record for the country.

Northern Ireland’s property prices are also steadily increasing with an annual rise at 13 per cent and an average house price of £177,265.

Even though Scotland’s average house prices rises have been slower than other UK regions but still has its highest average of £194,621, however its rate of annual growth has slowed down falling from 9.3 per cent to 8.2 in March.

Whereas in the south east the region recorded another impressive house price increase of 11.6 per cent with an average price of £385,790. Across the region prices rose by £40,177 over the last twelve months, which is another record for any English region - excluding London – by being able to boast a £40,177 increase over the last twelve months.