House prices have continued their upward trajectory, rising 1.9 per cent during the three months to January 2014 compared to the preceding three months, the latest Halifax house price index data reveal.
The increase is within the range of 1.8 per cent to 2.1 per cent that has been consistently recorded on a monthly basis throughout the preceding eight months going back to June 2013, Halifax said in the report.
Prices in the three months to January were 7.3 per cent greater than in the same three months a year earlier. This increase was marginally less than that recorded in December (7.5 per cent).
However, on a monthly basis house prices increased by 1.1 per cent in January, compared to the small fall in prices witnessed in the previous month.
Activity is on an upward trend with housing transactions in 2013 exceeding one million for the first time since 2007.
Martin Ellis, housing economist of Halifax, said: “With the supply of properties being slow to respond to more buoyant market conditions, stronger demand has resulted in continued upward pressure on house prices.
“Demand has increased against a background of low interest rates and higher consumer confidence underpinned by signs that the economy is recovering and unemployment falling faster than expected.
“Official schemes, such as Help to Buy, also appear to have boosted housing demand. However, continuing pressures on household finances, as earnings fail to keep pace with consumer price inflation, are expected to remain a constraint on the rate of growth of house prices.”
