UK house prices will extend advance this year: Halifax

[LONDON] UK house prices will extend their advance this year as the economic recovery strengthens after a 5.7 per cent increase last year, Halifax said.

While values fell 0.6 per cent in December, the first decline in 11 months, they increased 1.9 per cent in the fourth quarter, the mortgage unit of Lloyds Banking Group plc said in London yesterday. The average price in December was £173,467 (S$362,029).

"Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further boost consumer confidence," said Martin Ellis, a housing economist at Halifax. "This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand."