House prices bounce back in January, says Halifax

The measure compares prices in the three months to the end of January with the previous quarter.

According to the Halifax prices in January alone increased by 2%, compared with December – the largest January rise for six years.

And when measured on an annual basis, house price inflation increased to 8.5% – up from 7.8% in December.

For the last few months, house prices had been on a moderating trend.

“This bounce-back in house price growth in January coincides with reports of the first rise in mortgage approvals for six months in December,” said Martin Ellis, the Halifax’s chief housing economist.

Last week the Bank of England reported that mortgage approvals rose slightly between November and December.

However, some analysts have cast doubt on the figures.

“The 2.0% jump in house prices reported by the Halifax is hard to explain, and looks markedly at odds with other latest data and survey evidence,” said Howard Archer, chief UK and European economist with IHS Global Insight.

BBC

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