House prices flat in January

Month-on-month house price growth stagnated in January, according to the latest figures from Halifax.

The firm has published its monthly house price index, revealing that growth between December and January was zero per cent.

It means that the average property price was recorded as £197,244, with annual inflation hitting 4.5 per cent.

Despite monthly inflation going flat, Martin Ellis from Halifax said that he does not expect a major price correction in 2008.

"House prices were unchanged in January. Prices in the three months to January were one per cent lower than in the previous quarter… We expect sound economic fundamentals and lower interest rates to support house prices," he commented.

"Nationally, we predict that house prices will be flat in 2008. The UK economy recorded its 62nd successive quarter of growth in 2007 quarter four, extending the longest running period of unbroken growth on record.

"The economy is expected to continue expanding during 2008, albeit at a slower pace than in the past two years. Sustained growth should support a strong labour market," added the chief economist.

Related Articles