According to the report from Halifax Bank of Scotland, UK house prices in January were 4.1% higher than in the same month a year earlier. Economists had expected a 3.0% increase.

On a monthly basis, house prices rose by 0.4%. Prices were expected to remain unchanged.

In the latest quarter (November to January) house prices were 2.3% higher than in the preceding three months (August to October)

Russell Galley, Managing Director, Halifax, said:

"House prices kicked off the year with a modest monthly increase, rising by 0.4% in January following the stronger gains of 1.8% and 1.2% seen in December and November respectively. As a result, annual growth remained relatively stable at 4.1%, up just a fraction from the end of 2019. A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it's too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year, but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy".