House prices stabilised in January with the average property price remaining broadly unchanged, according to the Halifax House Price Index.
The latest figures from the lender showed that the typical UK property cost £281,684 in January, little changed on December’s £281,713.
Kim Kinnaird, director, Halifax Mortgages, noted: “This followed a series of significant monthly falls at the end of last year (-1.3% in December and -2.4% in November).”
“The pace of annual growth has continued to slow, to +1.9% (from +2.1% in December), which is the lowest level recorded over the last three years,” Kinnaird noted, with the average house price now around 4.2% below its peak in August last year.
But Martin Beck, chief economic advisor to the EY ITEM Club, suggested that: “January’s flatlining in values may prove only a temporary interruption to a trend of falling prices. Although mortgage rates have dipped from post-mini-Budget peaks, they’re still at their highest in a decade.”
Housebuilders were mixed after the release with Barratt Developments PLC, Redrow PLC (LSE:RDW) and Bellway PLC (LSE:BWY) all lower but Persimmon PLC (LSE:PSN) holding in positive territory.