House prices rose by 0.8 per cent during January as values bounced back after steep falls amid the pre-Christmas snow disruption, figures revealed yesterday.
Mortgage giant Halifax said the average cost of a home in Britain rose to 164,173 last month, but this followed a 1.3 per cent plunge in December as snowed-in buyers stayed away from the market.
Its quarter-on-quarter measure of house prices – seen as a smoother indicator of market trends – registered a drop of 0.7 per cent, according to the group.
Halifax said 2011 house prices would be constrained by consumer caution, with spending cuts and tax hikes hitting confidence.
But it noted that fewer sellers coming on to the market would help support prices by shifting the demand and supply balance.
Halifax housing economist Martin Ellis said: "The prospects for the market in 2011 are closely aligned with the performance of the wider economy."