Lender reports house price surge
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House prices rose 1.1 per cent in March, reversing a 1.6 per cent fall seen the previous month, according to the Halifax.
The lender said the increase took the average price of a UK home to £168,521, and puts the annual change at 5.2 per cent.
Halifax housing economist Martin Ellis said: ‘Prices in the first three months of 2010 were 0.6 per cent higher than in the final quarter of 2009. This was smaller than the 3.6 per cent rise between the third and fourth quarters of 2009, suggesting a slowdown in the trend rate of house price growth.
‘The return of the lowest stamp duty threshold to £125,000 affected housing demand at the end of 2009 and in early 2010. The bad weather in the first two months of this year also had an impact on demand at the start of this year.’
Other house price indices from Nationwide and Hometrack have also suggested prices rose in March, following a decline in the market in February.
Despite the surge, Mr Ellis said there are signs that increasing supply is beginning to balance demand, which should help contain price rises.
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