House prices increased by 0.6% to £169,777 in January, marking the seventh consecutive monthly increase, according to the lastest Halifax price index out today.
Prices increased 3.6% on the year, which is the largest increase in the annual rate of change since Fenruary 2008. The comparable rate a year ago was -17.2%.
Prices have increased by 9.9% since reaching a low in April 2009, which is an increase in the average price of £15,287 over this period. This follows a decline of 23% Auguest 2007 and April 2009.
Martin Ellis, housing economist for Halifax , says " The market 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 for sales has pushed up prices.
There are some signs that more people are putting their homes on the market. A further increase in the supply of properties is possible in the coming months, which would help to curb upward pressure on prices. Overall our current view is that house prices will be flat duriong 2010."
Taken from the http://www.negotiator-magazine.co.uk website.