Halifax Report UK House Price Decline In November

According to the Halifax UK house prices continued to decline during the month of November, falling by 0.1% from that recorded during the previous month.

The lender continued to report that the average property in the United Kingdom was now 0.7% cheaper than in 2009. Based on these statistics it is thought that the average house price is now £164,708.00.

The lender believes that the higher number of properties for sale, combined with the reduced buyer demand has led to the decline in house prices. If more and more vendors are reluctant to sell their properties, Halifax believes this could halt the decline in prices leading into 2011.

The three month on three month comparison, a less volatile measure of house price changes, showed a 2.1% in November. Martin Ellis, a Housing Economist commented on this statistic “This drop has accelerated towards the end of 2010 but this figure was still not as sharp as the 5.6% decline seen in the second half of 2008. In a statement the economist added “It was not a sign that house prices were going to plummet”.
“The Bank of England is likely to keep interest rates low for an extended period which will go on to support the improved mortgage affordability position for homebuyers”

Halifax concluded the report by stating “As a result, we do not expect to see a significant fall in house prices during 2011.”