Annual inflation at 4.2%

Posted: 06 Mar 2008 10:36:07 GMT

The typical UK property saw its value rise by 4.2 per cent in the 12 months leading to February.

The typical UK property saw its value rise by 4.2 per cent in the 12 months leading to February.

That is according to the latest Halifax House Price Index, which revealed that the average house price was £196,649 in the month.

A slight increase was also witnessed in the three months to February, with average house prices increasing by 0.2 per cent.

However, there was some negative news, with the monthly figure falling marginally by 0.3 per cent.

Martin Ellis, chief economist at Halifax, said that the figures are generally positive and he pointed out that the market is well supported.

"Over the past year, the average price of a home in the UK has increased by £4,390 to £196,649," he commented.

"Whilst the housing market has slowed over the past six months, it is supported by sound economic fundamentals.

"Interest rate cuts by the Bank of England are also helping to underpin house prices," continued Mr Ellis.

The majority of analysts believe that the base rate of interest will remain unchanged in March.

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