House prices rise continues unabated
Britain's housing boom is gaining in strength according to the Halifax, the UK's biggest mortgage lender.
The bank's latest survey showed prices jumped by 2.2% in March, up from a 1.6% rise in February, with prices up 18.5% on the same point last year.

The rise means the average property now costs £151,467, the Halifax said.

Low interest rates and high employment levels have continued to drive prices higher, and recent rate rises do not appear to have cooled the market.

Housing debate

Experts have different views on where the housing market is heading.

House market enthusiasts argue the low levels of interest rates mean the market is unlikely to see a property crash such as that of the late 1980s.

But some experts say they are wrong and people buying now will end up counting the cost.

Halifax figures show the rate of rise in house prices has seen a turn upwards since November last year.



The average house price today is more than five times as much as the annual average wage. Some experts say that is very high by historical standards and the market will have to correct.

Mortgage lenders tend to take a different view. The key difference today, they say, is not only that we have low and stable inflation and low interest rates, but that this is expected to continue for the foreseeable future.

Regional variations

Halifax said the average property price in Yorkshire and the Humber rose above £100,000 in the first three months of the year, making it the last English region to pass this level.

Average prices in the UK are below £100,000 only in Scotland (£85,212) and Northern Ireland (£93,692).

The mortgage lender said although house prices increased across the whole of the UK during the first quarter, there were significant regional variations.

Northern England saw the biggest rises, with prices climbing by 9.7% in the North West, by 9.4% in the North and by 8.1% in Yorkshire and the Humber.

The same regions recorded the largest price rises over the past year with the North experiencing the biggest gain of more than 30%.

Southern England saw the smallest price rises over the past year, with the South East climbing 7.3%, Greater London 9.1%, and East Anglia 9.3%.

Overall, prices in the South rose less than 10% in 12 months.

As a result, the North-South gap has continued to narrow, the Halifax said.

In the first quarter of 2003 the gap between the average price in London and the North was £135,901.

In the first quarter of this year, that gap had fallen to £125,981.