House prices have shown a continuous rise for seven months, according to the latest house price index.
Halifax's index found that property prices increased by 0.6 per cent in January.
According to the bank's housing economist, Martin Ellis, the prices in January are 9.9 per cent higher than the 'trough' of April 2009.
Mr Ellis attributed the increases to reduced interest rates over the past year boosting housing demand from homebuyers with adequate deposits for the market.
He noted that there were 'signs' that more properties would come on the market to meet increasing demand and "help curb upward pressure on prices".
Last month, housing experts attributed the strength of the market to homebuyers attempting to push transactions through before the end of the stamp duty holiday.
The research also found that the value of the average house is now £169,777.
Despite the forecast of 'flat prices', a key finding of the index was that house prices in January showed the 'largest increase in the annual rate of change' since February 2008.
See Also: Property News (6699)
Date Published: 04 February 2010
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