House prices down 2.6% in November

| December 4, 2008 | 0 Comments
House prices down 2.6% in November

Halifax has reported a further 2.6% fall in the average price of a UK home, in November.

The annual rate of decline now stands at 14.9% (compared with 13.7% in October), with the average cost of a property at £163,605, roughly the same as in July 2005 and down £31,485 over the past 12 months.

The annual figure is calculated on a three month average and last month, house prices were actually 16.1% below their November 2007 level, suggesting that the downturn in the market is escalating.

According to the lender’s chief economist, Martin Ellis, demand for homes is being curbed by a combination of high house prices in relation to earnings, constraints on householders’ incomes and spending power, and the decline in the availability of mortgage finance.

Mr Ellis adds that there are signs that the market is stabilising because the number of mortgages approved for new house purchases remained steady in the four months to the end of October when 32,000 new home loans were sanctioned.

Halifax’s findings compare with those published by Nationwide last week, when the UK’s biggest building society found that the monthly fall in house prices levelled in November, to 0.4%, lessening the annual fall slightly from a month earlier, to 13.9%.

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