January house price growth 'remained weak'

Posted: 06 Feb 2012 16:52:01 GMT

            Property News - January house price growth 'remained weak'

House price growth is still sluggish despite a slight rise in January.

The UK is experiencing sluggish house price growth, despite a slight rise in January.

According to the Halifax House Price Index, these costs increased by 0.6 per cent across the four-week period - but the three months leading up to January were 0.9 per cent lower than in the previous three-month spell.

Martin Ellis, housing economist at Halifax, noted the average monthly house price is currently around £161,000 - a level similar to that seen eight months ago.

The industry figure said: "The continuing very low level of interest rates has helped to support housing demand resulting in little overall movement in house prices since last spring."

He added mortgage payments have tumbled to their lowest level for 14 years when viewed as a proportion of disposable earnings for a new borrower.

The findings come after recent research from Santander suggested confidence is likely to return to the UK housing market over the next 12 months.