Market Update - January 2010

The house price index is based on month-on-month (m/m) figures, comparing January's price index against the previous month of December 2009. It will also provide an overview of the performance during January in comparison to the same time last year.

January saw another increase in house prices with a 1.2% rise (m/m). House prices rose by 8.6% in comparison to January 2009. This is the highest year on year (y/y) rise for 27 months, with the average house price now £163,481 compared to £150,501 this time last year.

Halifax (m/m) figure rose by 0.6% during January which was its seventh consecutively monthly rise. House prices in January were 3.6% higher compared to a year earlier and is the largest increase since February 2008. Halifax 3.6% increase is measured by the average for the latest three months against the same period a year earlier. House prices for Halifax now average at £169,777 compared to £163,945 this time last year.

Figures have shown that both The Nationwide and Halifax saw positive results with monthly and yearly rises. The Nationwide recorded strong figures in the first month of 2010 and also recorded their highest (y/y) rise for 27 months. Halifax also performed well with its highest annually rise since February 2008 and its seventh consecutively monthly rise.

Both The Nationwide and Halifax are showing positive signs, with the likelihood that as we start heading into spring within the next few months, house prices will further increase with (y/y) figures also improving.

Source: The Nationwide, Halifax