RICS: Halifax December house price data

Commenting on the Halifax house Price data, Simon Rubinsohn, RICS chief economist said: "The rise in Halifax house price index in December came as a surprise after three successive monthly declines. However, it is premature to conclude that this is likely to mark a turning point in sentiment. 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. However, unless inflation proves an increasing barrier to the Bank of England's ability to lower base rates there is unlikely to be a material decline in house prices.

"A key issue for first-time buyers eager to take their first step onto the property market in this climate will be the willingness of lenders to provide finance on attractive terms. The slippage in money market rates since the start of the new year suggests that there is more chance of further interest rates cuts being passed on more fully to borrowers but just as important will be the willingness of lenders to maintain loan to value ratios."