House prices grew by 2% in the first month of the year according to data released by Halifax. The average house price is now at £193,130. There was an increase in December by 1.1%, a slight increase in November of 0.5%, and a decrease of 0.4% in October. The increase reported by Halifax is in contrast with the report from lender Nationwide which reported a 0.3% for January.

The reasoning behind the increase is being credit to lower mortgage interest rates, stamp duty reform, and increases in income earnings.

Martin Ellis, housing economist for the Halifax, said, “The monthly figures in January can be particularly volatile due to the lower volumes of activity at this time of year and there have been unusually large rises on occasion in the past, such as in 2007 (2.3%) and 2009 (2.4%).”

Howard Archer, chief economist at IHS Global Insight, encouraged that caution should be taken in reviewing the house price data for January. He said, “Given the volatility that can happen in house prices from month to month and from survey to survey, it is best to try to form an overall view of the housing market from all of the data available.

“The overall evidence strongly points to house prices being reined in significantly in recent months by a marked weakening in housing market activity compared to the early months of 2014.”

Mortgage and remortgage interest rates continue to be a draw as some newer rates have cut into what were already historical lows for lenders. This may have an impact on demand and once demand increases lenders will cease to be competitive for borrowers and will begin to pull their best deals. For those seeking loans now the best rates will likely be the reward.