House prices in January were 4.1% higher than the same month a year prior, according to Halifax’s latest house price index.
January prices also rose 0.4% from December, and in the latest quarter (November to January) house prices were 2.3% higher than the preceding quarter (August to October).
The average house price last month was £240,054, up from £230,784 in January 2019 and £238,998 the month prior.
Russell Galley, managing director atHalifax, said: “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy.
“However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty.”
He added: “While housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.
“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure.”