House prices 'cooling'

House price inflation in the UK fell slightly in January to eight per cent from December, according to new figures.

According to the latest government data, house price inflation has been dropping month-on-month since October last year.

However, house price inflation in London continues to increase, standing at 13.8 per cent in January from 12.2 per cent in December.

Economist Howard Archer at Global Insight commented: "Taking an overall view of the housing market, including the latest surveys by the Nationwide and the Halifax, it appears house prices are cooling markedly but not collapsing at this stage."

London remains the area of the UK with the highest average house price of £351,096, with the north-east recording the lowest at £151, 810.

A recent survey from the Royal Institution of Chartered Surveyors found that the number of surveyors reporting a drop in house prices hit almost record levels.

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