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Housing prices drop again in 'stagnant' market

The moribund housing market is failing to make any headway in 2012 after another drop in prices during August, Halifax said yesterday.

The lender's latest index showed average prices dropping 0.4 per cent over the month to £160,256.

But the overall picture is one of stagnation, according to Halifax's housing economist Martin Ellis

He said: "Overall, there has been little change in house prices so far this year with the UK average price in August at a very similar level to the end of 2011... Nonetheless, house prices are likely to remain flat over the remainder of 2012 and into next year."

Halifax expects lower inflation to help the housing market this year as the confidence and spending power of households is boosted.