House prices Rise 0.8% in January – Halifax

During January house prices rose by 0.8%, according to a recent survey released by Halifax.

The monthly change of +0.8% left average house prices at £164,173, although the quarterly figure is a disappointingly low -0.7%. Average house prices are 2.4% lower than this time last year, the report said. The monthly figure is quite a contrast to the -0.1% reported by Nationwide last week, although that report did have a similar figure for quarterly changes, at -0.5%.

As with other recent house price reports, Halifax drew attention to the falling number of mortgage approvals in recent weeks as a cause of market inactivity. However the report also highlighted the significance of decreasing numbers of new properties on the market, which has been considered one of the reasons for slightly more positive figures than the sharp price decreases seen in the market during 2010.  

Commenting, Halifax housing economist Martin Ellis said: “On a positive note, there have been further signs that the recent downward trend in prices is causing homeowners to be more reluctant to put their properties on the market. This development should help to relieve downward pressures on prices as long as it is sustained. We also expect interest rates to remain very low for some time, supporting a favourable affordability position for many existing mortgage borrowers and those entering the market.”