Britain’s house prices hit new high but outlook remains bleak

House prices in the UK jumped to a new high last month, but the clouds hanging over the market have not dispersed, lender Halifax warned on Monday.

The bank said prices in March rose 1.5% to £227,871, ahead of the 0.2% rise analysts had been expecting.

However, it cautioned that monthly figures can be volatile and pointed out that although prices in the quarter to March were up 2.7% from a year earlier, they slipped by 0.1% from the previous quarter to December.

A number of estate agents have warned that stamp duty taxes and Brexit uncertainty have caused some buyers to delay purchases. Halifax said the number of new instructions has now fallen for 24 consecutive months, while unsold stock is at a record low.

Russell Galley, managing director of Halifax, said mortgage approvals are down compared with 12 months ago and sales have remained flat.