British house prices rose by more than expected in January, according to figures published by mortgage lender Halifax on Friday which suggested the housing market remained resilient despite affordability challenges.
House prices rose by 0.7% in monthly terms last month after falling by 0.2% in December, Halifax said, above a 0.2% increase forecast by economist in a Reuters poll.
Annual price growth slowed to 3.0% in January from a 3.4% rise in December, the slowest increase since July last year.
“Affordability is still a challenge for many would-be buyers, but the market’s resilience is noteworthy,” Amanda Bryden, Halifax’ head of mortgages, said.
“There’s strong demand for new mortgages and growth in lending. With a stamp duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March.”
The expiry at the end of next month of temporary tax incentives for buyers of less expensive homes as well as for first-time buyers is expected to speed up some purchases.
Other gauges of Britain’s housing market have suggested a strengthening of demand in recent months. Figures from the Bank of England last week showed lenders in December approved the most mortgages for house purchases since September 2022.
(Reporting by Suban Abdulla）
