January house prices up 0.2%

House prices have increased by 0.2 per cent since December and average house prices have reached £163,177, according to figures from the Land Registry.

However, January's House Price Index shows an annual price decrease of 0.9 per cent.

People looking for the best mortgage rates will be interested to hear that the region with the highest annual increase is London with an increase of 2.4 per cent.

Wales saw the greatest annual and monthly price fall with a -6.1 per cent and -4.2 per cent respectively.

The low level of property transactions will come to be "the norm" over the next one to two years, Mouseprice has said.

Selwyn Lim, director of the company, said that talk of a potential interest rate rise in the coming months means that there is unlikely to be a sharp rise in supply or demand in the property market in the short-term.

"[An interest rate rise] could well be the right thing for the economy as a whole, but it is not going to do any favours to transaction levels and house prices," he said.
 

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2011-03-02 13:23:43 © Moneyextra.com