9
Dec
UK house prices fell in November, the Halifax says
UK house prices have continued to slip, falling by 0.1% in
November from the previous month, the Halifax says.
The lender, now part of Lloyds Banking Group, said that the
average property was now 0.7% cheaper than a year ago, at
£164,708.
Sluggish demand and a higher number of properties for sale had
pushed down prices, it said.
But it said that signs of a reluctance to sell from some
homeowners could halt the decline in prices.
Acceleration
The three-month on three-month comparison, a less volatile measure
of house price changes, showed a 2.1% fall in November.
This drop has accelerated towards the end of 2010, but Martin
Ellis, housing economist at the Halifax, said this figure was still
not as sharp a decline as the 5-6% drop seen in the second half of
2008.
It was not a sign that prices were likely to plummet, he
added.
"There are some tentative signs that homeowners are becoming
more reluctant to put their properties on the market which, if
continued, will help to relieve the current downward pressure on
prices," he said.
"Interest rates are likely to remain very low for an extended
period, which will support the improved mortgage affordability
position for homeowners.
"As a result, we do not expect to see a significant fall in
house prices."
Mortgage availability
The year-on-year drop in property values was the first annual fall
registered by the Halifax since November 2009.
The Nationwide's most recent survey showed the annual change
remaining just in positive territory at 0.4% in November, although
month-on-month prices were falling.
Figures from the Land Registry, widely regarded as the most
comprehensive house price survey, have also shown a downward trend
in England and Wales.
A key factor in declining prices has been the lack of
availability of mortgages, especially for first-time buyers,
according to housing market commentators.
"Demand for property in the still uncertain climate remains
muted. Even where there is demand, and it does still exist, the
problem is a lack of finance," said Philip Clarke, managing
director of property consultants Fisher Property Services.
"The great mortgage famine of the past three years shows no sign
of subsiding."
However, the latest figures from financial information company
Moneyfacts show that although mortgages with low deposits remain
rare, there has been some pick-up for home loans at an 80% or 85%
loan-to-value.
The number of mortgage products available for those offering a
5% or 10% deposit remains low and static.
But for those able to pay a 15% deposit, the number or products
went up from 444 at the start of October to 470 at the start of
December, Moneyfacts said. The number of products rose from 340 to
384 over the same period for those able to pay a 20% deposit.
Source: http://www.bbc.co.uk/news/business