2.7% annual growth pushes house prices to new record high: Halifax

This is despite house prices in Q1 remaining 0.1% lower than in the preceding three months - the second consecutive decline on this measure.

Russell Galley, managing director of Halifax, said: “House prices in the three months to March were largely unchanged compared with the previous quarter. The annual rate of growth continues to be in a narrow range of under 3%; though the average price of £227,871 is a new high.

“Activity levels, like house price growth, have softened compared with a year ago. Mortgage approvals are down compared to 12 months ago, whilst home sales have remained flat in the early months of the year. This lack of direction in the housing market is in stark contrast to the continuing strength of the UK jobs market. The unemployment rate is now the joint lowest since 1975 and in the three months to January there were 402,000 more people in work compared to a year earlier.

“In the coming months we expect price growth to remain close to our prediction of 3% despite the very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale will also support price growth.”

Founder and CEO of Emoov, Russell Quirk, commented: "While we have seen a tentative start to the year, it would seem that the spring is starting to return to the step of the UK market where price growth is concerned.

"Although market activity over the first quarter has remained fairly flat, there are signs that momentum is beginning to build and we should see a degree of stability return over the coming quarter.

"The current affordability of mortgages, coupled with a reduction in unemployment and an insufficient level of housing stock, will continue to stimulate the market and price growth should exceed wider predictions over the latter part of the year."