Halifax: House prices down by 0.5%

9th Nov 2007

A new house price index from Halifax suggests that the average UK house price declined by 0.5 per cent in October.

Over the three months to October, prices went up by just 0.3 per cent, and the annual growth rate is 8.9 per cent, down from 10.7 per cent in September. The standardised average house price was £197,248.

Halifax chief economist Martin Ellis said: "House prices fell by 0.5 per cent in October. Prices in the three months to October were 0.3 per cent higher than in the previous quarter - a good guide to the underlying trend - continuing the steady easing in house price growth since the end of 2006.

"The rise in interest rates since August last year and negative real earnings growth so far this year are curbing housing demand, leading to a slowdown in both price growth and activity."

Halifax also said that the strength of the UK economy would underpin the housing market moving forward, and that persistent supply shortages would continue to bolster the average price.

© Zoopla Property Group Limited

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