British house prices rose again in January, more than reversing December's drop, but the annual rate of increase fell to its lowest in three years.
The Nationwide building society said average prices rose a seasonally adjusted 0.4% this month after a 0.2% drop in December, leaving them 12.6% higher than a year ago, the weakest annual rate since January 2002.
Economists said the figures suggested that while the housing market was clearly slowing, it was not collapsing.
Many commentators had been worried about a more serious crash in house prices after a prolonged boom which saw prices double over five years, but tough talk and five interest rate hikes in less than a year from the Bank of England appear to have slowed the market since the summer last year.
