Prices rise in December

The average property price increased in December, surprising many analysts.

According to the latest Halifax House Price Index, the average UK home increased in value by 1.3 per cent month-on-month.

It comes after three consecutive months of price falls and put the average price at £197,039.

Annual inflation was recorded as 5.2 per cent and Halifax is confident that property prices will be well supported in 2008.

"Sound economic fundamentals and lower interest rates will support house prices in 2008," said Halifax chief economist Martin Ellis.

"The UK economy is expected to deliver its 65th successive quarter of GDP growth during the year, extending the longest running period of unbroken growth on record.

"The MPC is likely to follow up last month's cut by reducing the bank rate at least twice in 2008," he added.

The Halifax figures fly in the face of Nationwide's latest house price index which revealed that the average property price fell by 0.5 per cent in December.

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