THE UK's biggest mortgage lender, the Halifax, says that house prices in the United Kingdom are still rising steadily despite interest rate rises.

According to the Halifax prices rose by one per cent in March, taking the annual rate of house price inflation to around 11 per cent and now the average house price is £194,362.

The strong economy and a shortage of housing stock was behind the rise but it felt price growth may ease towards the end of 2007 as the pressure on household finances begins to increase after three interest rate increases since last summer.

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