House prices fall again, says Halifax
Thursday 06 October 2011
Mortgage lender Halifax said the property market continues to lack direction after it reported a second successive month of lower prices today.
Last month's decline of 0.5% followed a fall of 1.1% in August, although Halifax said average prices in the quarter to September were still 0.1% higher than the previous three months - the first such rise since early 2010.
Halifax housing economist Martin Ellis said September's drop continued the mixed monthly picture so far this year with four rises, four falls and one month of no change in prices.
He added: "This mixed pattern is consistent with a market where prices are lacking genuine direction."
The average UK house price in September was 1% lower than in December 2010 on a seasonally adjusted basis, at £161,132.
Mr Ellis said the financial uncertainty was likely to be constraining demand but added that low interest rates and a rise in employment over the last year have been supporting the market.
"We expect little change over the remainder of this year," he added.
Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid 2007 to 26% in the most recent quarter. This is well below the average of 37% over the past 25 years and the lowest since 1997, the lender added.
This week, price comparison website MoneySupermarket said the average fixed two-year mortgage deal of 3.82% was the lowest since it began compiling records in 2007, down from 4.01% in August.
The latest drive downwards saw Leeds Building Society launch its lowest ever two-year fixed-rate mortgage with a rate of 1.99%.
Life & Style blogs
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Chinese student carries disabled friend to school every day for three years
£26000 - £28000 per annum + benefits : Ashdown Group: Senior Accounts Assistan...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£22000 - £40000 per annum: Recruitment Genius: This company is part of a Group...
£16000 - £18000 per annum: Recruitment Genius: Are you a a young, dynamic pers...