BRITAIN’S struggling housing market received an enormous boost yesterday as the Halifax the UK’s biggest mortgage lender announced a rise in property prices.

The Halifax bank has stated that its end of year figures show that the market grew by 5.2% year-on-year– which goes against market predictions that house prices will fall in 2008.

There was a 1.3% rise in house prices in December alone, eradicating falls in the months leading up to Christmas.

The biggest monthly rise since February last year sees experts now predict that property prices will continue to rise at a steady rate in 2008.

The more optimistic outlook means tomorrow’s Bank of England announcement for interest rates is key to rates of growth over the next year. The interest rates may well be kept on hold as a result of the latest positive house price figures. But many City experts still predict there will be a cut by around 0.25%.

Overall, the value of the average home in the UK is currently £197,039, which is approximately £11,759 more than at the start of 2007.

This all indicates the scaremongering with regard to a house market crash are wide of the mark and although the market has slowed there will be steady growth in 2008.