News: House Prices Up 0.6%, Says Halifax

Thu, 04 Feb 10

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

This is the seventh month in a row that the lender has recorded a rise in prices. The Halifax says the price of an average home is now £169,777, 3.6% higher than in January 2008.

However, prices are set to remain flat for the rest of 2010, the lender is warning. The lender’s housing economist Martin Ellis points out that the rise in January is below a monthly average rise of 1.1% for the previous six months.

He said: “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."

Ellis adds that there are signs that more people are putting their homes up for sale, which is likely to put the brakes on further price rises.

According to Home.co.uk asking prices for homes on the market in England and Wales increased by 0.1% during the month leading up to its January Asking Price Index report.

By Joe Lepper

See also: Asking Price Index, House Prices and Trends by Town and Postcode, Mortgages, Life Insurance and Mortgage Protection Guide

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