6
Feb
UK house prices rose 0.6% in January, Halifax says
UK house prices increased by 0.6% in January, according to the
latest survey from the Halifax.
The change means that the average cost of a house was
£160,907 last month, the bank said.
House prices are 1.8% lower than a year ago, according to the
Halifax's measure.
The bank said prospects for the housing market over the coming
months depended on whether the debt crisis in the eurozone would
affect the UK economy.
"If the UK can avoid a prolonged recession, we expect broad
stability in house prices in 2012," said Martin Ellis, Halifax's
housing economist.
Static
The Halifax, now part of Lloyds Banking Group, said that the price
of the average home in the UK was very similar to the average value
in the middle of 2011.
This had held up owing to the low level of interest rates, the
lender said.
And Tracy Kellett, managing director of UK buying agent BDI Home
Finders, said: "House prices are being held artificially high by
two key factors - an extreme lack of stock and historically low
interest rates.
"Throughout 2012, we are likely to see a further widening of the
north-south divide. Prices will be hit hardest where the economy is
feeling it the hardest."
Annual view
House prices in the three months to January fell by 0.9% when
compared with the previous three months, the Halifax said. This
three-month on three-month comparison is often thought to be a
better measure of underlying conditions in the market.
Last week, the latest survey from the Nationwide building
society valued the average home at £162,228. It said that
prices fell by 0.2% in January compared with December.
The Nationwide said the annual rise in house prices in January
was 0.6%, notably different to the 1.8% fall recorded by the
Halifax.
However, the year-on-year comparison is calculated slightly
differently by the two lenders. The Halifax compares the previous
three months with the same three months a year earlier to give a
smoother comparison, rather than a direct comparison of the
equivalent months.
source: http://www.bbc.co.uk/news/business-16903022