Halifax reports 0.6% rise in house prices

Monday, 06 February 2012 09:49

House prices rose by 0.6 per cent during January, according to latest figures from the Halifax.

The move brings the cost of the average home to around £160,907, some 1.8 per cent lower than the same time last year, the lender’s house price index shows.

Housing economist Martin Ellis said that the average UK house price is very close to where it was eight months ago.

The continuing low level of interest rates has helped to support housing demand, resulting in little overall movement in house prices since last spring, he added.

“Prospects for house prices over the coming months will, to a large extent, depend on events in the Eurozone and the repercussions of developments there for the UK economy,” Mr Ellis said.

“If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012.”

Dr Howard Archer, chief UK and European economist at Global Insight, said the Halifax report only suggests that property prices are unlikely to fall sharply.

“We are sticking to our view that house prices are likely to fall by around five per cent in 2012,” he said.

Tracy Kellett, managing director BDI Home Finders, said that the quarterly price drop of 0.9 per cent was a more accurate description of where the market is at than January’s 0.6 per cent rise.

She said: “Buyers remain deeply cautious, while sellers won’t sell unless they really have to. Recreational home moving is almost a thing of the past.”

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