UK house prices held up better than expected in March as supply constraints outweighed uncertainty over the Brexit process, according to figures from Halifax. The high street lender said house prices rose by 2.6% in the three months to March compared with the same period last year. The increase was above the 2.3% annual rise predicted in a Reuters poll of economists. Prices fell by 1.6% in March compared with February, when the more volatile monthly measure surged by a record 6%. However, the monthly fall still represented a less severe correction than the 2.4% expected by economists. The British housing market has been marked by volatility in recent months, with supply constraints sustaining prices, even though many buyers have been put off by uncertainty over Brexit’s potential effects on property values. Russell Galley, a managing director at Halifax, said: “Industry-wide figures show that the number of mortgages being approved remains around 40% below pre-financial crisis levels, and we know that lower levels of activity can lead to bigger price movements.” The average home costs £233,181, Halifax said, although that masks significant regional differences, with demand for expensive properties in London having slumped. A separate measure last month from Nationwide, Britain’s biggest building society, showed London drove the first quarterly fall in house prices in seven years in England. However, outside the south-east of England, prices rose in every region. Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, said that while Halifax’s data pointed to a stronger market than other measures, “a sustained period of falling house prices still isn’t on the cards” because of low unemployment and relatively cheap mortgage rates. British economists expect house prices to grow by 1.8% this year, according to the latest consensus forecasts collected by the Treasury. The Office for Budget Responsibility, which provides independent forecasts for the government, predicts house price inflation of 0.8% in 2019.
UK house prices performed solidly in March despite ongoing Brexit uncertainty, according to Halifax . Prices increased a record 6% between January and March compared to Q1 2018 , beating the 2.3% rise anticipated by economists polled by Reuters . House values were down 1.6% in between January and March from Q1 2018 after the more turbulent monthly measure grew by a record 6% , though this was still better than the 2.4% predicted. Supply constraints have sustained prices even as Reuters ’s possible impact on property has caused concern among buyers. Halifax said current low levels of activity around mortgages may eventually result in "bigger price movements".