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House Prices Falling 2007-10-05

Posted by clype in Money, Statistics.
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House prices fell by 0.6 per cent during September 2007 — the biggest drop since December 2006 — and helped pull ‘The Annual House Price Inflation’ down to 10.7 per cent ( its lowest level since May 2007), say Britain’s biggest mortgage lender, ‘Halifax‘.

As a result, the average cost of a home in the UK continued to hover just below the 200 000 GBP mark at 198 500 GBP.

‘Halifax’ said house prices had been showing a continuing steady downward trend since the end of 2006, with the annual rate of growth rising by just 0.9 per cent during the third quarter of the year, down from annual rate of growth rise of 2.3 per cent in the second quarter and an annual rate of growth rise 3 per cent during the first three months of 2007.

It added that it expected the annual rate of growth to decline further during the coming months as strong monthly house price gains seen during the autumn of last year dropped out of the figures.

‘Halifax’ Chief Economist Mr.Martin Ellis, said:

[Picture of Martin Ellis]‘September’s price fall is consistent with the normal behaviour of the market during a slow down.

‘When the market does slow down it is usual to see a mixed picture of marginal falls and marginal rises, it’s similar to 2005.’

But he is not expecting there to be a widespread drop in house prices. He said:

‘The UK economy is in a strong position: sound market fundamentals — including high levels of employment and a shortage in the number of properties available for sale — will continue to support house prices.’

Previously…

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