House prices up by 1.9% in January 2009.

25 January 2009

As reported by Halifax house prices rose by 1.9% during January. However, annual figures show a fall of 17.2%. Average house price, based on asking prices, is now standing at £163,966. This report contradicts Nationwide's reports claiming that house prices have gone down by 1.3% during January as job cuts deterred people from buying new properties. Everywhere estate agents have reported that the number of people registered on their books gone up, but that interest has not yet converted to sales. Experts say that unless our economy stabilise and stop shrinking, property market will not improve. Official figures show that the UK economy is in recession, having had two quarters of negative growth one after the other. In recent months we have seen a few base rate cuts as the government is attempting to boost the economy back into activity. Analysts are expecting a further cut, which would lead to an all time low 1%.