House prices keep rising

Two of Britain's biggest mortgage providers agree that house prices are still rising, but they disagree markedly about the pace of growth.

The Halifax, Britain's largest lender, said yesterday that the price of an average property rose by 0.4% in March to £87,453.

Twenty-hour hours earlier, Nationwide put the figure at 1.4%.

Thelatest figure from Halifax, which follows February's 1.5% rise, means the annual rate is 4.1%, up sharply on January's figure of 0.9% but well down on the 13.5% recorded a year ago.

A Halifax spokesman said the mortgage price war, which has seen several lenders cut their borrowing costs in recent weeks, had provided a boost to the property sector, with important indicators of housing market activity confirming that demand had improved.

Inland revenue figures show a modest pick-up in property sales in the past few months following a slowdown in the second half of 2000.

"The prospects for the housing market remain good," a Halifax spokesman said. "The continuing sound economic ackground, highlighted by the recent fall in unemployment to below 1m, the likelihood of further rate reductions in the coming months and affordability levels that are not stretched should all support demand during the remainder of 2001."

Nationwide said on Tuesday that the typical price tag rose to £85,077 last month, leaving the annual rate of price growth at 7.2%.

It warned that the recent stock market turbulence and the foot and mouth crisis could have an impact on the property markets in London and the countryside.