House markets in Britain continued to improve in the first quarter of this year with the house prices rising 1.1 percent year on year, British mortgage lender Halifax said on Friday.

According to a house price index report of Halifax, now part of Lloyds Banking Group, housing prices went up 1.2 percent in the first three months as compared with the previous quarter, and up 0.2 percent in March from the previous month.

"Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year," said Martin Ellis, Halifax's chief housing economist.

"Overall, we expect to see a modest increase in UK house prices during 2013," he said.

British Finance Minister George Osborne announced a package of housing measures in his Budget plans last month, which aimed to increase supply of low-deposit mortgages to credit-worthy households, boost levels of house building and contribute to economic growth.