LONDON (AFX) - Halifax Group PLC saw the credibility of its respected and widely quoted house price index called into question yesterday when it claimed that the value of bricks and mortar in the UK had barely moved in the last 12 months, the Daily Telegraph said. The bank, which is also Britain's biggest mortgage lender, reported a marginal increase in house prices of 0.1 pct in January, which left annual house price inflation at 0.9 pct, its lowest for five years.
The figures contrasted sharply with those from Nationwide last week, which said there had been a 2.5 pct leap in prices in January alone, making annual inflation 11.2 pct, the paper noted. Housing analysts believe the monthly figures can no longer be trusted, though most felt the Nationwide numbers are closer to the truth at the moment.