House prices rose just 0.6% in past year, index shows

The average house price has risen by only 0.6% over the last year, reveals the latest LSL and Acada-metrics House Price Index.

Prices in January are also down 0.1% compared to December, taking the average house price to £221,211.

David Brown, commercial direc-tor of LSL Property Services, says: “Concerns over the direction of the economy, and the ongoing difficul-ties in obtaining mortgage finance continue to take their toll on house prices. However, the good news is that downwards pressure eased in January.”

He says we should see a bubble of increased activity in the next couple of months as properties worth more than £1m are bought before April’s 1% hike in Stamp Duty.