House prices rose 0.1% in March

6 April 2011 | By Natalie Thomas

House prices in the first three months of 2011 were 0.6% lower than in the previous three months, showing a continuing modest decline in prices according to this measure of the underlying trend.

This was the fourth consecutive quarterly fall, but it was an improvement on the decreases in the third and fourth quarters of 2010.

Prices in March were marginally, 0.1% higher than at the end of 2010.

But prices in March were 2.9% lower than a year ago as measured by the average for the three months to March against the same period a year earlier, this is the biggest annual decline since October 2009.

Martin Ellis, housing economist at Halifax, says: “House prices continue to fall at a modest pace as measured by the quarterly rate of change, the best measure of the underlying trend in price movements.  Prices in the first quarter of 2011 were 0.6% lower than in the fourth quarter of 2010.  There was a 0.1% rise in prices in March and prices were a similar amount above those at the end of 2010.

“The overall decrease in prices in the first quarter of 2011 compared with the previous quarter was a little lower than the quarterly falls recorded in the third and fourth quarters of 2010.  The recent increase in employment, particularly those in full-time jobs, may have been an important factor supporting the market. 

“Our forecast remains for a 2% decrease in house prices in 2011 as a whole. Uncertainty over the general economic outlook and individual financial circumstances are likely to constrain housing demand, resulting in some modest downward pressure on prices.”

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