House price index 'does not signal a turnaround'

The latest figures from the Halifax house price index are surprising in that they suggest a rise in property values, one industry body has claimed.

Personal finance commentator the Royal Institution of Chartered Surveyors (Rics) has observed that the increase follows three successive months of falls.

However, in news likely to interest those looking to compare mortgages, it states that the data is unlikely to herald a change in sentiment.

A spokesperson for the firm comments: "Our suspicion is that the market environment is likely to remain challenging for at the least the first half of this year and that activity levels will remain subdued."

The institution stopped short of warning of a decline in property values, however.

Lender decisions on whether to provide help with finance to first -time buyers at attractive rates was identified as a defining aspect of the new buyer sector, the spokesperson added.

According to Halifax, the standardised average house price stands at £197,039, having increased at a rate of 1.3 per cent over the month.