House prices in England and Wales jumped by 1% in March, putting the average cost of a home up to £178,423 (€262,029), official figures showed today.

The housing market in Britain is heading for five years of pain as average earnings catch up with property prices, an economist predicted today.

British house prices are set to fall by 20% during the next three years as the booming UK property market corrects itself, a research group has claimed.