No change in January house prices

New figures from Halifax indicate that house prices were unchanged in January, news which may interest those planning to self build their own homes.

The figures for the month follow a 1.3 per cent rise recorded by the lender in December 2007.

It took the annual house price inflation rate to 4.5 per cent, with an average figure of £197,244.

However, the notion that house price inflation will dip into negative figures during 2008 was rejected by Halifax chief economist Martin Ellis, who repeated the bank's view that home values will be "flat" this year.

He said: "We expect sound economic fundamentals and lower interest rates to support house prices," suggesting there will be two more rate cuts and that the economy would be bolstered by continued growth and falling unemployment.

Earlier this week Nationwide recorded a 0.1 per cent drop in prices during January.


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