House prices at a new high

HOUSE prices have hit a record average high of £227,871 after a “surprise” 1.5% increase last month.

The rise was the biggest monthly jump since August and follows a 0.5% increase in February, Halifax figures show.

But low interest rates mean homeowners now spend 29% of their income on their mortgage, compared to 48% in 2007.

Howard Archer, of EY Item Club, said despite the “surprise spike” 2018 would be difficult for the market.