House prices in Britain soared by 2.2 per cent during March amid continued strong demand and a shortage of homes for sale, figures showed today.
The rise boosted annual house price inflation to 18.5 per cent for the year to the end of March, up from 16 per cent in January, and pushed the average price of a house in Britain through the £150,000 barrier for the first time to £151,467.
Halifax said house prices had now risen by 6.2 per cent so far this year, and an increase in the level of sales also suggested the market was gaining momentum.
The news, which came the day after Bank of England figures showed homeowners withdrew a record £16.19 billion in equity from their properties during the last quarter of 2003, will increase pressure on the Bank's Monetary Policy Committee to raise interest rates when it meets next week.