UK HOUSE PRICES RISE FOR THIRD CONSECUTIVE MONTH 

Average UK house prices rose for the third month straight in December to their highest level since March 2023, according to Halifax (Financial Times). Average house prices rose by 1.1 per cent last month to £287,105, just over £5,000 more than December 2022. 

Kim Kinnaird, director at Halifax Mortgages, said December's price rise may have been driven by a lack of properties for sale coupled with a fall in mortgage rates raising confidence among buyers in early 2024 (Reuters). 

HOUSEHOLD INCOMES TEMPORARILY BOOSTED BY HIGHER INTEREST RATES 

The overall boost to UK savers’ incomes from higher interest rates outstripped the impact of increased mortgage payments on households, according to new research from the Resolution Foundation think -tank (Financial Times). Real income from savings rose by £34 billion over the period — more than offsetting the £18 billion rise in debt interest costs.  

Examining the impact of the Bank of England’s rate -rising cycle between December 2021 and August 2023, the think -tank added that the boost has not been felt evenly by households across the UK, with older asset-rich households having gained the most, while younger mortgager households have been hit hard (The Independent).  

NEWS IN BRIEF

The prime minister has signalled that the next UK general election will take place in the autumn (Financial Times). 

The UK services sector has reported its fastest jump in activity for six months, according to the S&P Global/CIPS UK Services Purchasing Managers’ Index (Sky News).  

Electric cars sales in Britain have missed their 2023 target as sales in December fell 19 per cent year-on-year (The Times). 

Trade minister Kemi Badenoch will meet her Turkish counterpart during a trip to Istanbul today to discuss closer ties, ahead of the expected launch of negotiations on a new free trade deal later this year (Reuters).