The average price of a home rose by £844 in January, according to the latest Halifax House Price Index, as record low interest rates continued to support demand.

Halifax reported a 0.6 per cent increase in prices, taking the average property value to £160,907 in January compared to £160,063 in December.

The Halifax's rolling three-month measure - used to give a more stable picture of house price trends - showed prices down 0.9 per cent since October.

Still selling: House prices have held up as low borrowing costs ease the burden on buyers and limit the numbers forced to sell.

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