UK house prices tick up in January

UK house prices edged up in January, boosted by the Funding for Lending scheme, mortgage lender Nationwide said this morning.

According to the lender, house values ticked up 0.5 per cent in January, although values were flat year on year, avoiding a decline for the first time since February.

The typical UK home is now worth £162,245.

"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," Nationwide chief economist Robert Gardner said this morning.

"The Funding for Lending Scheme has achieved some success in bringing down mortgage rates, with some signs of a pick up in lending activity."

The scheme, which came into effect in August, allows banks and building societies to access more than £80bn in cheap finance if they maintain or increase net lending to households and businesses .