UK house prices rose 1.1% between February and March, according to the Department for Communities and Local Government (DCLG).

The DCLG index showed the average home cost £206,890 in March, up from £204,556 in February.

The figures mirror those of the Nationwide and Halifax which have both shown a buoyant housing market in 2007.

However, the DCLG did point out that annual house price inflation slid back a little from 11.8% to 10.9%.

It explained that the reason for the slide in the annual figures was because strong price growth experienced between February and March 2006 fell out of the figures.

Experts suggest that UK house price inflation should begin to slow during the remainder of 2007.

“House prices have probably peaked, but nevertheless remain pretty elevated,” Howard Archer, chief UK and European economist at Global Insight, said.

“House prices will only gradually lose buoyancy over the coming months despite the likelihood that demand will be increasingly dampened by the rising affordability pressures stemming from higher interest rates, modest real disposable income growth and elevated house prices,” Mr Archer added.

Posted: 05|15|07 at 7:55 am. Filed under: UK News.