Halifax House Price Index (HPI) for January 2010 has shown that house prices are up 0.6% on those from December 2009. Although this is the seventh consecutive monthly rise, it is the lowest in this period and lower than the 1.1% average.

In contrast the index is 3.6% up on last year which is the largest annual rate – measured by the average for the latest three months against the same period a year earlier – since February 2008.

“The marked reduction in interest rates over the past 15 months has, from a low base, boosted housing demand from those with a sufficient deposit to enter the market. Increased demand has combined with a low supply of properties available for sale to push up prices.

There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to.” Martin Ellis, housing economist

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