House prices up again in March
The housing market strengthened again for both March and for the first quarter, according to the latest survey, though at a slower pace than the previous three months.
Building society Halifax said house prices increased by 0.9% in March and by 1.6% for the first quarter of 2006. The rise in prices was slower than the 2.3% increase seen in te fourth quarter of 2005.
The annual rate of house price inflation came in at 6.2%, demonstrating a firmer housing market compared with just 3% in the third quarter of 2005 but significantly lower than the 9.7% a year ago.
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"Housing demand remains well underpinned by a strengthening economy, high employment and low interest rates. UK house prices are forecast to rise by 3% in 2006, broadly in line with the predicted rise in retail price inflation," said Halifax.
The rise in prices in the first three months of 2006 was smaller than the gains recorded in the two final quarters of 2005, said Halifax adding that there are also signs that housing market activity may be beginning to level off.
Chief economist Martin Ellis said, "House prices increased by 0.9% in March and by 1.6% in the first quarter of 2006 with the average house price breaking the £175,000 barrier for the first time."
