The average price now stands at £169,777, according to the lender, and is the seventh successive month that values have risen. Despite the continued improvement, January’s increase was more modest than in any of the previous six months. The year-on year rise was 3.6%.
Martin Ellis, housing economist at Halifax, 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.
“A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices.”
The index comes hot on the heels of Nationwide’s monthly report which claimed that prices had risen by 1.2% in January. Catherine Penman, head of research at property consultancy Carter Jonas, said it was difficult to make sense of slightly conflicting data from different sources.
She added: “The house price landscape varies from isolated hotspots of activity where prices are proving strong, to areas where they still seem to be in decline. The price of a property is defined by its location and quality, not what is happening in the broader market.”
Richard Kitt, managing director of Tyser Greenwood Surveyors, said: “Rising prices have created a false sense of security within the industry, and there is likely to be a small drop before we see a recovery in the second half of the year.
“The money flow is still too slow, with the industry needing lenders to offer a range of competitive products to help meet the demand created by the increased housing stock levels.”
