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.

LONDON (Reuters) -British house prices rose by more than expected in January, according to figures published by mortgage lender Halifax on Friday which suggested the housing market remained resilient despite affordability challenges.

UK house prices reached a new record average high in January of nearly £300,000, according to Halifax. The average property price was £299,138 as house prices increased by 0.7 per cent month-on-month and three per cent annually.

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.