"During 2012, house prices were broadly flat and we expect this subdued trend to continue"
- Blerina Uruci, an economist at Barclays Plc
Home prices in the U.K. advanced last month, and are likely to continue rising in the rest of the year, according to Halifax. The report showed that values gained 0.2% from the previous month to an average 163,943 pounds ($249,500), down from a 0.5% growth a month earlier. From a year earlier, values surged 0.3% last month. Britain's government and the Bank of England both introduced measures to support lending across the nation in order to boost property market. Earlier this month, a report by the BoE showed that U.K. lenders increased the availability of mortgages in the first quarter.
"During 2012, house prices were broadly flat and we expect this subdued trend to continue," said Blerina Uruci, an economist at Barclays Plc in London. "However, we forecast a gradual recovery to emerge toward the second half supported by improving economic conditions, loose monetary policy and restricted supply."
"Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year," said Martin Ellis, a Halifax economist. "We expect to see a modest increase in U.K. house prices during 2013."
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