By AFP | Feb 4, 2010
British house prices rise in January: survey
British house prices rose 0.6 percent in January, the seventh successive monthly rise, thanks to record-low interest rates and a shortage of properties for sale, data showed on Thursday.
However, January's rise was more modest than in any of the previous six months, home-loans provider Halifax said in its latest survey.
"House prices rose by 0.6 percent in January. This was the seventh successive monthly increase and takes the average price to 9.9 percent above its trough in April 2009," Halifax housing economist Martin Ellis said.
"The marked reduction in interest rates over the past 15 months has, from a low base, boosted housing demand from those with a sufficient deposit to enter the market. Increased demand has combined with a low supply of properties available for sale to push up prices," Ellis added.
Facing a deep recession, the Bank of England last March decided to cut its key lending rate to a record low level of 0.50 percent -- where they have remained ever since and are expected to stay after a BoE meeting Thursday.
Ellis forecast British house prices to be "flat" overall in 2010 compared with last year.Halifax, part of state-controlled Lloyds Banking Group (LBG), said the average house price in Britain currently stood at 169,777 pounds (194,242 euros, 269,009 dollars).
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