House prices rose last month as falling mortgage rates increased the number of potential buyers, according to an industry survey.

Property values increased by 1.3pc in January compared to the previous month, according to the Halifax house price index.

It was the fourth monthly gain in a row after six consecutive falls before that.

The survey found that average house prices increased to £291,029, which was £3,900 more than last month.

Compared to the same month last year, property prices grew by 2.5pc, which was the highest annual growth since January
2023.

Halifax Mortgages director Kim Kinnaird said: “The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers. 

“This has resulted in a positive start to 2024’s housing market.”

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