House prices start 2010 with a lift

HOUSE prices jumped bye 1.2 per cent in January compared with the previous month, according to figures from the Nationwide Building Society.

The average UK home costs £163,481, following the ninth monthly property price rise in a row.

Nationwide's chief economist, Martin Gahbauer said figures which showed the UK economy had come out of of recession meant that UK house prices had "gone some way beyond the recovery in the overall economy".

The report suggested the housing market had been hit by the lack of wage rises during the recession

However, pay restraint had prevented more people losing their jobs which could force them to to sell their homes.

The lack of supply in the housing market is one of the reasons why prices have continued to rise.