UK house prices have hit another record high with the average property price reaching £299,138, Halifax has said.The UK's largest mortgage lender, part of Lloyds Banking Group, said property values recovered in January after seeing a slight dip in December.

House prices climbed by 0.7% in monthly terms last month after falling by 0.2% in December, Halifax said, above a 0.2% increase forecast by economists in a Reuters poll. Prices increased by the most in nearly a year in the three months to January.

Halifax revealed the average house price rose by 0.7 per cent in January alone, with the typical home now selling for £299,138.