House prices up 1.3% says Halifax

Posted: 08 Feb 2007 10:14:23 GMT

House prices rose 1.3 per cent over January following a slight negative blip at the end of 2006, the Halifax house price index has shown

House prices rose 1.3 per cent over January following a slight negative blip at the end of 2006, the Halifax house price index has shown.

The annual rate of inflation now stands at 9.9 per cent – the same figure as the previous month, despite a 0.9 per cent fall during December.

Analysts said that reading too much into the monthly index would be premature, with several other key findings pointing to a cooling housing market.

"If the December and January Halifax data are taken together, it could be seen as a sign that house prices could be beginning to come off the boil," said Howard Archer of Global Insight.

Mortgage approvals during January were at their lowest point for eight months. The average UK house price has now reached £188,623 said Halifax..

Financial markets reacted badly to the figures ahead of today's meeting of the Bank of England's rate setting committee.

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