Halifax reports 0.6% house price rise

The Halifax House Price Index has recorded an increase of just 0.6% in the average UK house price for the month of January.

The rise is the most modest for six months, and contrasts starkly with Nationwide’s figure of 1.2% for the month.

Halifax figures show an annual property price rise of 3.6%, with the typical UK house now valued at £169,777.

While a 3.6% increase may sound modest, it is a considerable improvement on the annual figure 12 months ago which reported a fall of 17.2%.

Martin Ellis, housing economist at the mortgage lender, 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.

“There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices. Overall, our current view is that house prices will be flat during 2010."

Despite its stronger growth figures for January, Nationwide has also warned that the pace of property price increase is slowing, and concurs that prices are likely to be flat in 2010.