Soft interest rates and signs of revival in the housing segment jumped house prices by 1 per cent in December, according to the recently released Halifax housing index. Prices, which remained under pressure due to slump in the housing and construction segment, rose 9.4 per cent since April.

Halifax's housing economist, Martin Ellis, said, "The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households. This has helped to stimulate housing demand, albeit from a low base."

Halifax reported that improvement in the job market and attractive lending rates improved demand in the housing segment. Average home price in UK touched £169,042 in December leaving months of sluggish sales behind. The index claimed 23 per cent decline in house prices since April 2007 and the corresponding period this year.

House prices declined less than expected this year due to repeated cut in interest rates to revive demand in the segment. The other major factor to push demand is the move to propel demand among would-be buyers, which enabled everyone to go for home buying plans despite the unavailability of finance.