Property prices up 1.1% in March

House prices increased by 1.1% in March, partly offsetting February’s 1.6% fall, the latest Halifax price index shows.

This rise was the eighth in the past nine months, taking the average price to £168,521 – 9.1% above the low point seen last April.
Prices in the first three months of 2010 were 0.6% higher than in Q4 2009.

This was less than the 3.6% rise seen between Q3 and Q4 2009, suggesting a slowdown in house price growth.

Martin Ellis, housing economist at Halifax, says the end of the Stamp Duty holiday in December affected demand at the end of last year and into early 2010.

He says: “Bad weather also had an impact on demand at the start of this year. There are signs that an increase in the number of properties available for sale is beginning to reduce the imbalance between supply and demand.

“This increase should help constrain the upward pressure on house prices.”