UK housing market rise: Jan 2009

The latest Halifax House Price Index has revealed that UK house prices rose by 1.9% in January 2009.

The rise offset December’s 1.6% decline, however prices in the three month to January 2009 compared to the preceding three months were still 5.1% lower.

Speaking on the January 2009 rise, Martin Ellis, Halifax’s housing economist, said it was always important not to place too much weight in one month’s figures.

“There are some very early signs that market activity may be stabilising, albeit at quite a low level.

“Nonetheless, continuing pressure on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are expected to mean that 2009 will be a difficult year in the housing market,” Mr Ellis said.