UK house prices jumped 1.9 per cent in January according to the Halifax, bringing much-needed relief to estate agents (well they're human beings too, sort of) and upsetting the pundits who've all been saying that they would continue falling throughout 2009. One such is oft-quoted Howard Archer (good name for an economist) of Capital Economics who described the jump as "completely unexpected and incredible." How dare the facts fly in the face of Howard's wisdom? House prices, like most elements of the economy, are not an exact science. Their level depends what you measure, which could be completed sales (which are obviously affected by mortgage availability) or the price at which they're offered. But estate agents report that there is more interest in the market now than for 18 months at least, hardly surprising with interest rates at one per cent and hence mortgages, if you can get one, starting at just over three per cent. People aren't stupid and they can see a bargain when it shouts at them. Capital Economics, quite a highly-rated outfit actually, is still saying that prices will fall 20 per cent in 2009. With the peak spring buying season around the corner (yes, it will stop snowing eventually) they might find themselves revising this view.