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| House prices rise but face significant constraints, says Halifax | House prices rise but face significant constraints, says Halifax |
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| House prices rose for the fourth successive quarter at the beginning of 2013, according to figures released by mortgage lender Halifax. | House prices rose for the fourth successive quarter at the beginning of 2013, according to figures released by mortgage lender Halifax. |
| Prices in the first three months of the year were up by 1.2% on the previous quarter, and up by 1.1% on the same period in 2012. The lender's latest snapshot of the housing market showed a 0.2% increase in March, which followed a 0.5% rise in February. | Prices in the first three months of the year were up by 1.2% on the previous quarter, and up by 1.1% on the same period in 2012. The lender's latest snapshot of the housing market showed a 0.2% increase in March, which followed a 0.5% rise in February. |
| The average price of a UK home is now £163,943, more than £35,000 below the peak price of £199,612 recorded by the index in August 2007, and less than £10,000 above the recent trough of £154,663 in April 2009. | The average price of a UK home is now £163,943, more than £35,000 below the peak price of £199,612 recorded by the index in August 2007, and less than £10,000 above the recent trough of £154,663 in April 2009. |
| Despite noting an ongoing increase in house sales and predicting a further pick-up in prices, the lender said it expected "significant constraints" on demand to remain in place for the rest of the year. | Despite noting an ongoing increase in house sales and predicting a further pick-up in prices, the lender said it expected "significant constraints" on demand to remain in place for the rest of the year. |
| "Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year," said Martin Ellis, Halifax housing economist. "Overall, we expect to see a modest increase in UK house prices during 2013." | "Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year," said Martin Ellis, Halifax housing economist. "Overall, we expect to see a modest increase in UK house prices during 2013." |
| The downbeat prediction came despite George Osborne's intervention in the housing market in the budget with the Help to Buy scheme, which will offer help to first-time buyers and underwrite mortgages for homes worth up to £600,000. | The downbeat prediction came despite George Osborne's intervention in the housing market in the budget with the Help to Buy scheme, which will offer help to first-time buyers and underwrite mortgages for homes worth up to £600,000. |
| It also follows indications by lenders that they intend to increase the number of mortgages they make available in 2013. | It also follows indications by lenders that they intend to increase the number of mortgages they make available in 2013. |
| However, the number of mortgage approvals for house prices show that the housing market made a sluggish start to the year, with approvals falling 5% between January and February to the lowest level since September 2012. | However, the number of mortgage approvals for house prices show that the housing market made a sluggish start to the year, with approvals falling 5% between January and February to the lowest level since September 2012. |
| Halifax's rival lender Nationwide reported no price growth in March, but put the average price of a UK home at a very similar figure of £164,630. It said prices were up by just 0.8% year-on-year, but the lenders use different methodology for this figure, with Halifax comparing quarterly data while Nationwide compares that of a single month. | Halifax's rival lender Nationwide reported no price growth in March, but put the average price of a UK home at a very similar figure of £164,630. It said prices were up by just 0.8% year-on-year, but the lenders use different methodology for this figure, with Halifax comparing quarterly data while Nationwide compares that of a single month. |
| Howard Archer, chief UK economist at IHS Global Insight, said Halifax's figures reinforced his belief that house prices might see a small gain in 2013. | Howard Archer, chief UK economist at IHS Global Insight, said Halifax's figures reinforced his belief that house prices might see a small gain in 2013. |
| "However, it remains hard to see house prices making a decisive move upward in 2013 given the still difficult and uncertain economic environment," he said. "And the slip in mortgage approvals in February reported by the Bank of England is a reminder that periodic relapses in housing market activity and prices remain highly possible." | "However, it remains hard to see house prices making a decisive move upward in 2013 given the still difficult and uncertain economic environment," he said. "And the slip in mortgage approvals in February reported by the Bank of England is a reminder that periodic relapses in housing market activity and prices remain highly possible." |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Yorkshire BS | |
| Nationwide | Nationwide |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |