House prices flat in January

House prices held steady in the month of January, according to the country's biggest mortgage lender, which cited continuing weakness but also signs of a possible stabilisation in the market.

HBOS's Halifax house price survey on Tuesday also showed house prices in the three months to January were one percent lower than in the previous quarter, the third successive fall on this basis.

Analysts polled by Reuters had forecast a fall of 0.4 percent on the month but there was little market reaction to the data.

"While the volatile monthly number was not quite as soft as had been anticipated, the quarterly price data make it clear the housing market retains a clear weakening trend," said Richard McGuire at RBC Capital Markets.

Compared with the same quarter a year ago, prices were 4.5 percent higher, the lowest annual rate of inflation since late 2005. This compares with an annual rate of 5.2 percent in the three months to December and a peak of 11.4 percent in the three months to August.

The Halifax survey chimes with other figures showing Britain's once hot property market is cooling fast.

The Nationwide building society reported house prices fell 0.1 percent in January, the third successive monthly decline.

"The Halifax and Nationwide data indicate that, while house prices are cooling significantly, they are currently not plunging through the floor," said Howard Archer at Global Insight.