By Jonathan Davies

House prices grew 0.4% in March, compared with February, according to Halifax.

Compared with March last year, prices were up 8.1%, down from 8.3% in February.

The lender said that demand for properties was being kept high by low interest rates and wage growth.

But Halifax's housing economist Martin Ellis expects activity in the housing market to slow down as the year goes on, with annual growth resting between 3% and 5% by the end of the year.