House prices increased by 0.5 per cent in March, according to Nationwide.
The average house price now stands at £164,751, up from £161,183 in February. Prices are up 0.1 per cent on March 2010 and have increased in three of the past four months.
On a quarterly basis, house prices have risen 0.6 per cent in March.
Nationwide chief economist Robert Gardner says: “With the economic recovery expected to remain sluggish, the most likely outcome is that the property market will follow suit, with low transaction levels and prices moving sideways or modestly lower through 2011.”