British house prices increases 2 pct in Jan.

Britain's monthly house prices increased by 2 percent in January, higher than the 1.1 percent recorded the prior month, said Halifax, the country's largest mortgage lender, on Thursday.

British average house price grew by 8.5 percent in January over the same of month a year earlier, sending the average home price to 193,130 pounds (about 295,489 U.S. dollars), said Halifax in a press release.

House prices in the three months to January 2015 were 1.9 percent higher than in the previous three months. And this was the first increase in the quarterly rate of increase for six month, said Halifax.

Martin Ellis, housing economist at Halifax, said:" Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households' spending power resulting from lower consumer price inflation and reduced fuel bills."

Nonetheless, the mortgage lender expects that the overall downward trend in house price growth seen since last summer to continue over the coming months.

Nationally, house prices are expected to grow in a range of three to five percent compared with eight percent last year, it noted.

Matthew Pointon, Property Economist at Capital Economics, also commented in a note:" Alongside a growing economy and early signs that mortgage lending is finally beginning to rise, prices will see further gains over 2015, although not at their current rapid pace." Endit