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 on the figures, 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."

Other key facts in the Index include:

• House prices increased by 0.2% in March. This followed a 0.5% rise in February.
• Home sales increased by 5% between January and February on a seasonally adjusted basis, according to the latest industry figures. Sales in February, at 85,710, were 10% higher than in February 2012. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – however, fell by 5% between January and February to its lowest level since September 2012.
• The chancellor announced a package of housing measures in last month's Budget consisting of two elements – Help to Buy: equity loan and Help to Buy: mortgage guarantee. The aims of the package are to: (i) increase the supply of low-deposit mortgages for credit-worthy households, (ii) boost levels of housebuilding and (iii) contribute to economic growth.