[LONDON] British house prices rose in March at the fastest pace in seven months, bringing price growth on an annual basis back into double digits for the first time since mid-2014, mortgage lender Halifax said on Thursday.

House prices rose 2.6 per cent in March alone following a 1.5 per cent drop in February, easily topping a Reuters poll consensus for a 0.7 per cent increase.

On an annual basis, house prices rose 10.1 per cent in the three months to March, the biggest increase since July 2014. Halifax pointed to an acute imbalance between supply and demand as one reason for the surge.

Last week rival mortgage lender Nationwide reported that buyers of properties to rent and second homes were rushing to beat the introduction of a new tax.

REUTERS