The Halifax announce the first increase in house prices in ten months.  This puts the average UK house price at just over £163,000.  

Whilst market experts remain cautious, warning that an increase over one month should not be taken as an end to the overall downward trend of the last year.  Those who feel that the recession has been fueled by the media and the publics’ fascination with the economic situation, welcome this announcement and are hopeful that it will have a positive effect on the general outlook.

Chief economist at the Halifax has said that “it’s far too early to make any conclusion”.  Market experts predict that the effects of the downturn will continue over the next 12 months.  However this announcement along with the Bank of Englands report earlier this month, stating a rise in the number of mortgage approvals in December will surely provide some needed optimism.

As the Bank of England cut the base rate further this week to 1% to minimise the effects of the recession and with more people feeling the ‘pinch’, it is hoped that these measures are not too little too late.