Prices from November to January were 1.9% higher than in the previous three months, bringing the annual change in growth to 8.5% up from 7.8% in December.
Sales of homes last year were 15% higher than in 2013, at 1.23 million. This was the highest annual total recorded since 2007, but the index showed sales peaking in the first quarter before steadily declining during the course of the year.
The data is in contrast to findings published by Nationwide last week which found a moderate monthly change in house prices at the start of 2015 but showed growth in annual house prices dropped to 6.8% in January from 7.2% in December.
Halifax housing economist Martin Ellis (pictured) said the rise in house prices was the first in the quarterly rate of increase for six months.
“These improvements may indicate that the recent declines in mortgage rates, the reform of Stamp Duty and the first increases in real earnings for several years are providing a modest boost to the market,” he said.
“Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households’ spending power resulting from lower consumer price inflation and reduced fuel bills.”
Mortgage approvals also shot up between November and December, with the number of approvals increasing by 2% – a total of 60,275.
However, despite signs of positive growth, Ellis added that the lender expected moderate house price growth in 2015.
“We expect the overall downward trend in house price growth seen since last summer to continue over the coming months. Nationally, house prices are predicted to increase in a range of 3 to 5% in 2015 compared with 8% last year,” he said.
Prime Purchase managing director Charlie Wells added: “With interest rates unlikely to rise this year, those reliant on a mortgage will find it is a good time to buy. This will particularly benefit first-time buyers and stretched young families trying to move up the housing ladder.
“As for the next few months, the general election will give some homeowners an excuse not to put their property on the market until certainty returns. The reality is that if you have something special to sell then it will always sell, whether a general election is looming or not.”
