UK house prices rise 0.8% in March for third consecutive increase - Halifax

UK house prices increased for a third consecutive month in a row in March, according to data released by mortgage lender Halifax on Thursday.

House prices rose by 0.8% from February, taking the average sale price to £287,880 in March.

However, this increase was slower than the 1.2% recorded in February. On an annual basis, the rate of price growth slowed to 1.6%, down from 2.1% recorded in the previous month and the lowest since October 2019.

Halifax said the latest figures indicated borrowing costs could be easing after the shambolic "mini-budget" of former prime minister Liz Truss which proposed £44bn in unfunded tax cuts which led to a spike in lending rates and the withdrawal of thousands of mortgage products.

That surge had "now been largely reversed" and market prospects were also boosted by a strong labour, with unemployment at a historical low of 3.7%, while pay growth was "robust" Halifax said..

Rival lender Nationwide said house prices have fallen by 3.1% in the biggest annual decline since July 2009.

"While the path for interest rates is uncertain, mortgage costs are unlikely to get significantly cheaper in the short-term and the performance of the housing market will continue to reflect these new norms of higher borrowing costs and lower demand," said Kim Kinnaird, Halifax Mortgages director.

"Therefore, we still expect to see a continued slowdown through this year."

"While the increased cost of living continues to put significant pressure on personal finances, the likely drop in energy prices – and inflation more generally – in the coming months should offer a little more headroom in household budgets."

Reporting by Frank Prenesti for Sharecast.com