House prices rise almost 2%

Posted: 09 Feb 2009 08:43:22 GMT

High street mortgage lender Halifax has revealed that house prices across the country roses by 1.9 per cent between December and January, suggesting to some that a turnaround in the housing market may be beginning.

Despite the positive move, however, there have been claims that the jump in house prices do not reflect a true shift in the mortgage market.

Mortgage availability and rising unemployment both mean that house sales are likely to rise, and as such it is unlikely that house prices are experiencing a significant upturn.

Halifax economist Martin Ellis, said: "Prices in the three months to January compared to the preceding three months, which provides a better indicator of the underlying trend, were 5.1 per cent lower.

"There are some very early signs that market activity may be stabilising, albeit at quite a low level. Nonetheless, continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are expected to mean that 2009 will be a difficult year for the housing market."

Homeowners trying to sell their property will no doubt be cheered by such news but with sales remaining difficult, selling a property online could be a critical benefit to homeowners attempting to get the best price for their home.



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