Halifax tracks 10.9% annual fall in house prices

Halifax has reported that UK house prices fell by 1.8% in August, compared to July, taking the annual decline to 10.9%.

The annual figure is based on a three month average; the actual difference in prices between August 2007 and 2008 was -12.7%.

According to the lender, the average cost of a UK home is now down to £174,178 having registered the first double digit fall since Halifax began keeping records, in 1983.

The figure is now at the same level as in February 2006 and is likely to fall further as Halifax says it expects market conditions to remain challenging in the months ahead.

The remark shows little expectation that Government measures unveiled earlier this week will succeed in kick-starting the market.

Halifax chief economist, Martin Ellis, believes that pressure on household incomes and a lack mortgage funds will continue to slow the market and drive down prices.

Nationwide was the first lender to publish figures for the UK housing market in August.

The building society reported a 1.9% drop during the month, taking the annual fall to 10.5% and putting the average price of a home at £164,654, or £19,000 less than in August 2007.

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