Slow Down In House Price Growth

• News
• Published: 05 Feb 2010 in Money and Mortgages

The average house price saw its lowest increase for six months in January, according to new figures.

According to Halifax, the cost of an average home rose by 0.6% to £169,777 during the month, compared to average monthly gains of 1.1%.

Despite a seventh consecutive month where house prices rose, the figures suggest the rate in which they are increasing is slowing.

Figures released by the Bank of England earlier this week showed that the number of mortgages approved for house purchase fell in December for the first time in 13 months.

Property intelligence group Hometrack also reported a drop in both buyers and sellers in January, while it said the number of sales agreed had also fallen during the month.

The data prompted economists to speculate that the recent recovery in activity levels in the market may be easing.

Martin Ellis, Halifax housing economist, said: "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 curb upward pressure on prices."

He said overall he expected house prices to be flat in 2010.