Halifax reports 1.9% rise in house prices

Households across the UK were given fresh hope today with the news that the average house price increased by 1.9% in January, taking the average cost of a UK home to £163,966.

The findings were announced following the latest house price survey carried out by the Halifax – a survey which is widely regarded as one of the key indicators of market confidence.

The country's largest mortgage lender confirmed that January's rise in the average price of a UK home offset December's decline of 1.6%.

"There are some very early signs that market activity may be stabilising, albeit at quite a low level," said Halifax's housing economist, Martin Ellis.

However, the Halifax warned that any single month should not be given too much attention; while Mr. Ellis went on to say that 2009 will be a hard year for the housing market.

Earlier this week, the Chartered Institute of Purchasing and Supply (CIPS) released the findings of two of its surveys which, like Halifax's latest survey, provided further signs that the country's economic concerns may be close to bottoming out.

CIPS' found that activity in the services industry decreased in January at a slower rate than market analysts had predicted, while the group's construction survey revealed that the level of output in the industry was falling at a slower pace compared past declines.

Source: Times Online | Last updated: 5th February 2009

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