4
Feb
House prices rise by another 0.6%
House prices have risen for the seventh consecutive month -
rising by 0.6% in January compared with December, the Halifax has
said.
The average UK home was valued some 3.6% higher in January than
a year earlier, at £169,777.
The figures show the continued trend of rising prices which has
helped mortgage providers ease their lending criteria slightly.
However, the Halifax is predicting that prices will stay flat
overall in 2010.
The Halifax, which is now owned by the Lloyds Banking Group,
said that the average price of a UK home was now 9.9% above its
trough in April 2009.
However, housing economist Martin Ellis said that January's rise
was more modest than in any of the previous six months. The average
rise of the previous six months was 1.1%.
Rising values
The annual rise is calculated using an average of the last three
months with the same three months a year earlier.
This has risen sharply owing to the low levels of a year ago.
Interest rates have also been at a historically low level, which
has inflated prices, Mr Ellis 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," he said.
"Increased demand has combined with a low supply of properties
available for sale to push up prices."
He added that the state of the economy would be the dominant
factor for the future trend for house prices.
However, he said that there were signs that more people were
putting up homes for sale, which would curb any future rises.
SOURCE: www.bbc.co.uk/news Thursday 4th
Feburary 2010