Forexpros – House prices in the U.K. rose unexpectedly in March, after falling modestly in February, industry data showed on Wednesday.
In a report, the Halifax Bank of Scotland said its House Price Index jumped by 2.2% in March, defying expectations for a modest decline of 0.3%.
House prices for February were revised to a 0.4% drop from a previously reported 0.5% decline.
House prices in the three months to March were 0.1% lower than in the previous three months. This was the same as the decline in prices on this measure of the underlying trend in December 2011.
Prices in the first three months of 2012 were 0.6% lower than in the same period last year. This was the smallest fall in prices on this measure of the annual rate since October 2010.
The average U.K. house price is at the same level as in July 2011. The U.K. average price in March 2012, at GBP163,803, was almost identical to that in July 2011.
Commenting on the report, Halifax housing economist Martin Ellis said, ” Efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices.”
Mr. Ellis added that, “We continue to expect little overall movement in prices this year provided that the U.K. economy does not suffer a pronounced weakening.”
Following the release of that data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.18% to trade at 1.5885.
Meanwhile, European stock markets were broadly lower after the open. London’s FTSE 100 slumped 0.5%, the EURO STOXX 50 dropped 1.2%, France’s CAC 40 fell 1.2%, while Germany’s DAX tumbled 1.35%.
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