News & Current Affairs

October 22, 2008

House prices fall even further

Filed under: Reviews — expressyoureself @ 6:11 pm

September saw house prices in the UK fall even further according to figures recently released by the Halifax. In September, figures show that house prices fell by a further 1.3%. The annual fall now stands at 12.4% according to
Mortgage lender
Halifax officials, which brings the average house price down to £172,108. Officials have said that the average house price is now around the same as it was at the start of 2006, which is over a year and a half before house prices peaked last October.
When looking at three month comparison figures, the Halifax said that the decline in prices was starting to stabilise, which is also what Nationwide officials have said. However, the lenders have also said that the state of the mortgage
Loans market and housing sector would continue to be challenging, particularly given the increasingly tight lending criteria that was in place, which is expected to get worse.
Martin Ellis, chief economist at the Halifax, said: "The ongoing pressures on householders’ income, combined with the reduction in the availability of mortgage finance mean that market conditions will remain challenging." He added, however: "Lower interest rates will help mortgage borrowers faced with increasing pressures on their finances and provide a valuable support to the housing market."
He went on to state: "The resulting pinch on incomes, combined with the high level of average house prices in relation to earnings, has made it difficult for potential house purchasers to enter the market." One economist added: "Faster rising unemployment, heightened concerns over the economic outlook and widespread expectations that house prices will continue to fall markedly seem set to depress housing market activity and prices for some considerable time to come."

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