House prices remained unchanged in January as the flat start to the year in the property markets continues.

Mortgage lender Halifax announced that prices were stable in January after having fallen by one per cent over the last three months.

The year-on-year rise since last January was just 4.5 per cent, it added.

Figures from the mortgage lender also revealed that the average price of a UK home has increased by £7,628 over the last 12 months to £197,244.

However, economists are remaining optimistic that the fall in house price growth does not represent a full crash in the market, but rather a small lull or dip.

Ed Stansfield, property economist at Capital Economics, told the Guardian: "With affordability pressures still elevated and tighter lending criteria likely to curtail prospective home-buyers'' purchasing power, we do not expect this pause to be prolonged."

Experts predict that another interest rate cut in February is "probable", although two more cuts in total are expected throughout 2008.