Halifax reports 1.3% fall in house prices in December
The Halifax has today revealed UK house prices fell by 1.3% last month compared with November.
The latest house price fall takes the average cost of a UK home to £162,435, the Halifax said.
According to the lender, which is part of the Lloyds Banking Group, house prices are now 1.6% lower than a year ago.
Commenting, Halifax housing economist Martin Ellis said: “We expect limited movement in house prices during 2011 but with the risks on the downside.”
In stark contrast, the Nationwide Building Society last week reported a 0.4% rise for the month of December compared with November.
The latest rise means house prices are now just 0.4% higher than this time last year with the average UK home costing £162,763, said the Nationwide.
House prices came under pressure last year as a high level of instructions outstripped buyer demand.
The prediction for house prices in 2011 is for a slight fall as demand for housing is expected to stay weak as a result of the uncertainty surrounding the economy and the Government’s massive spending cuts.
Some experts are predicting falls of around 5% in 2011, while many have suggested they could fall by as much as 10%.