Jones was released by Hibernian ahead of Monday's transfer deadline after it became clear he would not be part of new head coach Alan Stubbs's plans for the coming campaign.
The Wales internationalist moved to Easter Road from Inverness Caledonian Thistle last summer but the switch failed to go according to plan. The 29-year-old will now seek to rekindle his club career at SPFL Championship rivals Falkirk after Houston moved quickly to snap him up. Jones first caught the eye of the Falkirk manager when he played for Wales against Scotland in the Carling Nations Cup tie in Dublin in May 2011. "He played centre-midfield and played really well," said Houston.
"So, it was a surprise to me that within a few months he ended up at Inverness. I was the United manager at the time and I never thought a player like that would become available. He's nearly 30 years of age, he's got good experience, he's a good passer of the ball.
"And he's still got plenty of legs left. For whatever reason he wasn't getting a game for Hibs. He'll certainly get an opportunity here. The rest is up to him."