Housing market lurches downwards once more

There was further evidence of weakening economic trends yesterday, with the latest data on house prices underlining the grim outlook.

Halifax Bank said house prices fell by 0.9 per cent between October and November – the third fall in the last four months. Prices in the three months to November were down 0.6 per cent compared to the preceding three months. And though the November decline followed a rise of 1.2 per cent in October, economists said the trend remained soft. "Squeezed purchasing power, a markedly weakening labour market and major concerns over the economic outlook will limit potential buyers and weigh down on house prices," said Howard Archer of IHS Global Insight.