House prices rose by 0.6% in January, according to the latest Halifax house price index. This was the seventh consecutive monthly increase, but January's rise was the lowest during this period and was significantly below the 1.1% average over the previous six months. 

Prices have risen by 9.9%, or an average of £15,287, since bottoming out in April 2009. This follows a decline of 23% between August 2007 and April 2009.

The average house price is now £169,777.

House prices in January were 3.6% higher on an annual basis. This is the largest increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since February 2008.  The comparable rate a year ago was -17.2%. 

"The marked reduction in interest rates over the past 15 months has, from a low base, boosted housing demand from those with a sufficient deposit to enter the market.  Increased demand has combined with a low supply of properties available for sale to push up prices,” said Martin Ellis, Halifax housing economist.

“There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices.  Overall, our current view is that house prices will be flat during 2010."

---

Tag this article :