You are here: Home - Mortgages - First Time Buyer - News -

House price rises fall back in January

Written by: Owain Thomas
House price growth in January slipped back to a more modest 0.4% after two consecutive months of more than 1% increases, according to Halifax.

After increases of 1.2% and 1.8% in November and December respectively, this was a return to the trend generally seen for much of the last two years where house price growth has hovered around zero.

The Halifax house price index showed the average residential property in the UK was worth £240,054 last month, up 0.4% from £238,998 in December.

In annual terms, house prices were 4.1% higher than January 2019 when the average property was worth £230,784.

This rate was up marginally from the 4% annual increase reported in December.

The strong growth of the previous two months was reflected in the quarterly rise of 2.3% being the highest three-month spell in more than a year.

Pent-up activity

Halifax managing director Russell Galley was cautiously optimistic about the figures, noting a number of important market indicators continue to show signs of improvement.

“We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned,” he said.

“The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty.

“So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.”

He added the lender was still expecting a moderate rate of house price growth over the course of the year, with demand likely to continue to exceed the supply of properties for sale across the UK.

And with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits, he said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week