House prices increased last month, but the annual rate of price growth slowed, according to the Halifax. 

Property prices were up 8.1% (to £192,970) compared to this time last year but the growth is less than the 8.3% recorded in February. 

It is thought that the housing market should begin to slow as the year goes on due to wage growth remaining at comparatively low levels.

Head of lending at Mortgage Advice Bureau, Brian Murphy, believes that the rate of house price growth has been ‘comforting’ for first-time buyers that were at risk of being priced out of the property market if last year’s rate of growth had been upheld. “Housing demand continues to hold strong as consumers make the most of record low mortgage rates and beneficial changes to stamp duty,” he said.

Murphy added: “The recent recovery of wage growth has also helped to make homeownership a more affordable prospect as consumers’ earnings begin to catch up. However, there still remains a dangerous imbalance in the supply of new homes that risks driving up house prices in the long-term. In the run-up to the general election, clear policies on housing and the creation of new homes are needed to prevent the current shortage from worsening.”