Demand has been expected to rise for properties as the Funding for Lending Scheme has helped lenders put out offers that are attracting buyers.  This is especially true of first time buyers which are expected to return to the market and give a boost to house prices in the first half of the year.  According to Halifax January house prices have gotten off to a good start for 2013. 

Halifax has reported that house prices have increased from November 2012 to January at 1.9% for the three months than in the previous three months.  This marked the second successive three month increase in prices and the largest in the past three years since January 2010 which recorded a 2.9% increase in the average house price in the UK.  In a comparison of January 2012 and January 2013 there was an annual rise of 1.3%.  The increases are optimistic despite the fact that January performed less favorably than December and November with a 0.2% decline.

Martin Ellis, Halifax housing economist, remarked on the report saying, “Market activity has also improved with sales in 2012 at their highest for five years. Rising mortgage approval numbers point to further increases in home sales in the coming months. The Funding for Lending scheme has helped lenders to lower interest rates and improve availability in the past few months. This is likely to have been a factor contributing to the pick-up in both home sales and prices.

“The outlook for the UK economy and house prices, however, is more unclear than usual. Subdued economic growth and pressures on household finances are expected to constrain housing demand. Overall, we expect continuing broad stability in house prices nationally in 2013.”