Halifax has announced that house prices in the UK rose by 0.4 per cent in March, when compared to Fe...

1. Mortgage lending data shows house price growth
Halifax has announced that house prices in the UK rose by 0.4 per cent in March, when compared to
February's figures.
The average property price in the UK is now approximately ?193,000. This represents a rise of 2.6
per cent in the first three months of this year, with Halifax saying it predicts house prices to be
between 3 and 5 per cent higher at the end of 2015 than they were at the beginning of the year.
According to the lender, property prices are currently 8.1 per cent higher than they were one year
ago, with the property demand remaining strong due to low mortgage rates, and also the current
earnings growth.
"The recent return to real earnings growth for the first time in several years, very low mortgage
rates and last December's stamp duty changes are supporting housing demand," said Martin Ellis, a
Halifax economist. "The rising level of house prices in relation to earnings should, however, curb
house price growth and activity."
However, critics have highlighted the lack of supporting data, meaning Halifax's figures should be
treated with caution. Chief economist Howard Archer, of IHS Global Insight, said: "The Halifax data
have been notably more volatile than other house price measures in recent months and stronger
overall than most."
Spring typically sees a rise for the housing market each year, as prospective buyers take advantage
of the lighter evenings to view houses, although analysts believe this could be affected by the

2. upcoming general election, and the uncertainty it brings with regards to housing policies.
A rise in house prices represents bad news for first-time buyers, who are finding it increasingly
difficult to be able to afford to buy their own home. They can usually afford the mortgage, but not
the deposit required at the start. There are a number of help to buy schemes around which aim to
help first-time buyers get on the property ladder, but critics say it is a lack of housing which is the
main problem.
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