House prices within the UK elevated by 0.8% in January compared with December, according Halifax.
A common house within the UK now expenses £164,173, the lender stated. Figures from the Halifax differ from the findings of the Nationwide Constructing Sociey survey which reported a slight fall in home prices in January.
Nevertheless, prices nonetheless fell at their sharpest annual rate in much more than a year and also the underlying trend remains weak. Halifax, which is now component of the Lloyds Banking Group, stated that prices had fallen 2.4% compared having a year earlier. The lender is expecting small alter in property values throughout 2011, even though other commentators have predicted a fall in prices.
“We anticipate restricted movement in home prices overall this year. You will find, nevertheless, most likely to be some monthly fluctuations using the dangers on the downside,” stated Halifax’s housing economist Martin Ellis.
Mr Ellis blamed snowy climate for the lack of activity within the housing marketplace throughout December.
“The prospects for the marketplace in 2011 are closely aligned using the efficiency of the wider economic system. Consumer confidence has fallen lately, partly as a outcome of nervousness concerning the economic outlook,” the economist added.
Halifax also stated that Prices within the three months towards the finish of January had been 0.7% lower than the prior three months.
Falling prices in current months, combined with low interest rates, have triggered a higher reluctance amongst property owners to place their houses in the marketplace, according to Mr Ellis.
But he added that he expects interest rates to stay low for some time “supporting a favourable affordability position for numerous current mortgage borrowers and these entering the marketplace.” Nationwide Constructing Society’s home cost survey published earlier within the week showed a slight fall of 0.1% in January.
Nationwide’s survey forecast that home prices would remain static or drift just a little lower throughout 2011.