8
Sep
Halifax says house prices have stabilised
House prices have stabilised, according to the latest survey
from the Halifax mortgage lender.
It says the cost of the average UK home rose by just 0.2% in
August to £167,953.
That figure was only slightly lower than at the end of 2009 and
is still 16% below the peak of August 2007.
Despite the small increase in prices during last month the
annual rate of increase declined further, from 4.9% in July to 4.6%
in August.
The Nationwide said last week that prices were now only 3.9%
higher than a year ago.
"Prices are now at a very similar level to that at the end of
last year," said the Halifax's chief housing economist Martin
Ellis.
"Activity has also been largely static since the start of the
year.
"These developments suggest that the market is broadly stable,
with house price inflation having cooled since last year, when
supply shortages helped to push up prices," he explained.
Low activity
Meanwhile, housebuilder Barratt has reported improved earnings, but
a market still stuck in first gear, in its full-year financial
results.
The homebuilder showed a full-year loss of £33m, down from
£144m the previous year.
Despite the steadily improving conditions, "by historic
standards the market remained difficult and activity levels
continued to be extremely low," the company said.
The company blamed the continuing lack of mortgage finance for
constraining demand, saying the housebuilding industry had
responded by opening fewer new sites.
"Whilst the improved balance between supply and demand has
stabilised prices, it has done little to address the nation's
fundamental housing shortage," it added.
Source: http://www.bbc.co.uk/news/business