Property prices flat in January
House prices were unchanged in January compared to the previous month, according to the Halifax House Price Survey.
Over the last quarter prices have fallen by 1% – suggesting prices are moderating, but not crashing as many had feared.
According to the research annual house price inflation now stands at 4.5% – down from 5.2% in December and 6.2% in November.
The average price of a home in the UK has increased by £7,628 over the past year, and now stands at £197,244.
The figures are the latest to highlight a slowing in UK house price growth, with Bank of England figures from last week showing that the number of mortgages approved for people buying a house fell by 35% during the final quarter of 2007, compared with a year earlier.
Halifax chief economist Martin Ellis remained upbeat however. “We expect sound economic fundamentals and lower interest rates to support house prices. 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.”
On the likelihood of Bank of England rate cuts Mr Ellis said: “There will certainly be one this week and we expect another one, possibly more depending on the state of the economy.”