Nationwide says house prices up 0.5% in January

UK house prices have risen 0.5% this January, according to the first Nationwide House Price Index of the year. The report says that the typical home is now worth £162,245. The average first-time buyer home costs 4.4 times average earnings. This is above the 20 year average of 3.6 times earnings, but it is well below the highs of 5.4 recorded in 2007. Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices increased by 0.5% in January, though prices were unchanged compared with January 2012. "While activity in the housing market remains muted by historic standards, there have been tentative signs of a pick-up in activity in recent months.  The Funding for Lending Scheme has achieved some success in bringing down mortgage rates, with some signs of a pick-up in lending activity." February 4, 2013