According to data from mortgage lender Halifax, British house prices rose for a third consecutive month in March, indicating a further stabilisation of the market

following the turbulence that was caused by former Prime Minister Liz Truss's "mini-budget" last September.

In month-on-month terms, house prices increased by 0.8%, making it the second-strongest gain since June 2022, following February's 1.2% increase. This positive news contradicted a Reuters poll of economists, which had predicted a 0.3% drop in prices for the month.

Halifax's report also revealed that house prices were 1.6% higher than they were a year ago. The lender's latest figures suggest that the housing market has stabilised, following the turmoil caused by Truss's unfunded tax cut plans, which led to a surge in borrowing rates in the autumn of 2022.

Although the Bank of England has continued to increase interest rates since then, there are indications that it is approaching a peak for Bank Rate. While the path for interest rates is uncertain, mortgage costs are unlikely to get significantly cheaper in the short term. Therefore, the performance of the housing market will continue to reflect these new norms of higher borrowing costs and lower demand, according to Kim Kinnaird, a director at Halifax Mortgages.

Kinnaird added that the lender still expects to see a continued slowdown in the housing market throughout this year.

The latest figures from Halifax differ from those of rival lender Nationwide, which reported that its measure of house prices fell by 0.8% in March from February. It also revealed that house prices were down by 3.1% in annual terms, representing the largest decrease since 2009.

However, other indicators, such as the Bank of England's mortgage approvals data and a measure of asking prices compiled by property company Rightmove, have suggested that the market has become more stable in recent months.

Overall, the latest report from Halifax suggests that the housing market is continuing to recover from the upheaval caused by Truss's "mini-budget" last year. Although there may be uncertainties regarding the future path of interest rates, the current trend of higher borrowing costs and lower demand is likely to continue in the short term.