House prices rise in early 2013

HOUSE prices rose by 1.2 per cent in the first three months of 2012, according to the latest Halifax House Price Index.

The average British home now costs £163,943, although the Halifax also reports a slowdown in the number of approved mortgages during February, suggesting fewer sales are being completed.

"Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year," said Halifax housing economist Martin Ellis.

"Overall, we expect to see a modest increase in UK house prices during 2013."