The average UK house price climbed by 1.1% in March compared to February, according to the latest Halifax House Price Index.

Halifax also reported that in the latest quarter, from January to March, house prices were 0.3% higher than in the preceding three months, between October and December.

With prices also 6.5% higher than they were in March 2020, the average property is now worth £254,606, a new record high.

Halifax managing director, Russell Galley, suggested that following a “relatively subdued start” to the year, the housing market enjoyed a “resurgence” during March.

“A year on from the early days of the first national lockdown, March’s data shows that house prices rose by 6.5% annually, or £15,430 in cash terms,” Galley commented.

“The continuation of government support measures has been key in boosting confidence in the housing market. The extended stamp duty holiday has put another spring in the step of home movers, whilst for those saving hard to buy their first home, the new mortgage guarantee scheme provides an alternative route onto the property ladder.”

Halifax revealed it is expecting elevated levels of activity to continue over the next few months, but is remaining cautious about the long-term outlook of the housing market.

“Overall we expect elevated levels of activity to be maintained in the coming months, with consumer confidence spurred on by the successful vaccine rollout, and buyer demand still fuelled by a desire for larger properties and more outdoor space, as work-life priorities have shifted during the pandemic,” Galley added. “A shortage of homes for sale will also support prices in the short-term, as lower availability always favours sellers.

“However, with the economy yet to feel the full effect of its biggest recession in more than 300 years, we remain cautious about the longer-term outlook. Given current levels of uncertainty and the potential for higher unemployment, we still expect house price growth to slow somewhat by the end of this year.”

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