British house prices returned to strong growth in March, but big questions are being raised over whether this can continue later in the year, the Halifax Mortgage Bank said on Thursday.
House prices grew 1.4% month-on-month in March, the biggest rise in six months, marking the ninth consecutive month of increases and following a 0.8% rise in February.
Compared to a year ago, house prices rose 11.0%, Halifax said, slowing slightly from February’s 11.2% growth, which had been the highest rate since 2007.
Halifax said the rise reflected too many buyers interested in not enough homes coming on the market, but warned mounting pressure on household finances could slow house price growth in coming months.
“Buyers are facing the prospect of higher interest rates and a higher cost of living. With affordability metrics already tight, these factors should lead to a slowdown in home price inflation over the coming year.” next year,” said Russell Galley, managing director of Halifax.
Consumer price inflation reached its highest level in 30 years in February, 6.2%, and two weeks ago the Government’s budget watchdog forecast that it would approach 9% by the end of 2022, which would contribute to the biggest drop in living standards since at least the 1950s.
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