British House prices increased by 1.9 per cent in March despite fears the market had stalled, Nationwide said this morning.
The lender said house prices were up 26.2 per cent on a year-on-year basis in March. In February, house prices rose 0.4 on the month for a 24.8 per cent year-on-year increase.
In the first quarter of 2003, house prices were up 3.9 per cent, down from a 6.7 per cent rise in the October-December period last year.
The building society still expects house price inflation of 10 per cent in 2003.
It expects base interest rates close to current levels by the end of the year, compared with its previous expectation of 4.5 per cent.
Commenting on the figures, Mr Alex Bannister, Nationwide's group economist, said: "There has been much speculation about the housing market slowdown in recent months but our index suggests that house price growth remains buoyant although the trend over the last few months has moderated".
He said activity has slowed, with house sales down 5 per cent in the 12 months to February.
AFP