Halifax survey records 1% March rise

Posted: 05 Apr 2007 11:08:53 GMT

Halifax Bank, Britain's biggest mortgage lender, has published its latest house price index, which shows that prices rose by one per cent in March, taking the annual house price inflation rate to 11 per cent.

Halifax Bank, Britain's biggest mortgage lender, has published its latest house price index, which shows that prices rose by one per cent in March, taking the annual house price inflation rate to 11 per cent.

This took the average UK house price to £194,362.

Halifax said that strong demand was continuing to keep prices rising, although the impact of interest rates has begun to be felt with a slight slowdown in the market.

Tim Crawford, Halifax Group economist, said: "We expect the recent rises in interest rates, negative real earnings growth and above inflation council tax bills to lead to slower house price growth over the coming months."

News of the Halifax figures comes just hours before the Bank of England monetary policy committee announces its decision on the base rate, with many predicting a rise from the current rate of 5.25 per cent to 5.5 per cent.


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