UK property prices have rebounded quickly but talk of stellar rises is premature

The scope for a near-term surge is limited by the market only having just avoided a crash, say analysts

• UK house prices rise at fastest rate for a year
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This time last year there was speculation that the UK was set for a property market crash. The Bank of England was raising interest rates at every meeting of its monetary policy committee and interest from potential new buyers was fading fast.

In the event, such fears have proved unfounded. Judging by the latest data from the lender Halifax, the Bank's 14 increases in official borrowing costs had only a modest and temporary impact on prices. Prices rose by 1.3% in January, the biggest monthly increase since June 2022. No question, this has been one of the shortest and shallowest corrections on record.