Frank O'Donnell

House prices saw an increase of 1.2% during the first week of the year. This followed two consecutive monthly falls in prices. This was due to low levels of stock helping drive prices up.

This jump pushed the Rightmove House Price index for January up 0.4%, compared to the 2.2% drop registered in December. Prices rose 4.1% by the end of 2009 compared to the previous year.

The rise is likely to be triggered by low levels of stock on the market, with the number of properties at its lowest level since Rightmove began monitoring the market in 2000.

The reason for lack of supply of properties is caused by reduced access to mortgages and economic uncertainty.