House prices in the first three months of 2013 were 1.2% higher than in the final three months of 2012 according to the latest Halifax House Price Index.
Commenting, Martin Ellis, housing economist, said: "The housing market continues to show signs of modest improvement. Prices in the first three months of 2013 were 1.2% higher than in the preceding quarter (fourth consecutive increase).
Prices were 1.1% higher than in the first three months of 2012. House sales also continued to rise, according to the latest industry-wide figures. Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year.
Overall, we expect to see a modest increase in UK house prices during 2013." He said. This supports recent research that houses over £1m many requiring a 1 million mortgage or more, where also showing greater sales growth.
This positive news comes on top of the fact that the UK is set to avoid falling back into recession, according to the British Chambers of Commerce (BCC).
The BCC believes a strong performance by Britain's service industries during the first three months of the year has kept the economy growing. But its research and a separate business survey suggest more mixed fortunes for UK manufacturing.
The BCC says it expects the UK economy will record "positive but subdued growth" in 2013