New figures show that British house prices increased by 1% in March.
Lender Halifax said a shortage of housing stock continued to drive values up during the month despite emerging signs of cooling demand.
The monthly increase helped pushed the annual rate of house price inflation up to 11.1%, up from 9.9% seen in the previous three months.
But the latest housing statistics suggest that the monthly rate of change is slowing, down from 1.8% in February and 1.3% in January. Halifax noted that March saw the second smallest monthly increase since the interest rates began their ascent in August 2006.
Meanwhile, official figures show that Britain's manufactured output unexpectedly dropped by 0.6% in February from January, marking the sharpest decline since October 2005. Economists had expected a 0.3% rise.
On a 12-month basis, manufactured output climbed 1.2% in February, the Office for National Statistics (ONS) said, below market expectations of a 2.2% increase.
