January freeze hinders property market

 The Arctic weather conditions put a freeze on the housing market during January as buyers and sellers put their moving plans on pause.

Overall, 20% more surveyors reported a drop in new house hunters than those who saw a rise, down from 18% more who reported a rise in inquiries in December.

At the same time, a balance of 5% of surveyors said the number of people putting their home on the market fell, down from 15% who had seen an increase in sellers during December.

Bad weather had had a negative effect on the level of new sales agreed. Despite the slowdown in activity, house prices continued to rise with 32% more surveyors reporting price increases in January than those who saw falls, up from 30% more in December.

Surveyors remain confident that the dip in activity is temporary, with the proportion who expect prices to continue rising doubling during the month from a balance of 12% to 24%.

Things are likely to pick up in the forthcoming months as we step into spring. The housing market recovery continues to be strongest in London, the south-east and the south-west.

Halifax's chief economist, Martin Ellis, said he expected to see more homes coming on to the market in the coming months, and this would curb further price rises in 2010.