Halifax: house prices falling
The bank's February House Prices Index shows prices are falling, despite the proportion of first-time buyers increasing.
House prices are falling, according to February’s Halifax House Price Index. Prices in February were down 0.5% on January and 1.9% on a year ago.
February is the fifth consecutive month where quarterly prices have dipped, although the fall is slightly smaller than January’s 0.9% decline. Annually, prices have also been down between -1% and -2% for the past five months.
The average UK house price is now £160,118; that’s around the same level it was at last April when the average price was £160,393.
The proportion of first-time buyers who are purchasing increased for the second successive month ahead of the Stamp Duty holiday coming to an end on the 24th March.
Halifax says a lack of supply and low interest rates means prices are continuing to stagnate. But it says that falling inflation and better economic data in recent weeks might point to a revival ahead.
However, it warns again that any significantly negative developments in the Eurozone that have a knock-on effect on the UK would affect prices.
Last week, Nationwide reported that prices had risen by 0.9% annually, although it attributed much of this to a 'bounce' due to first-time buyers trying to beat the Stamp Duty deadline.
Use lovemoney.com's innovative new mortgage tool now to find the best mortgage for you online
At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.
Most Recent
Comments
-
Up a bit, down a bit, actually they've been pretty much flat for a while now.. Not an interesting headline "house prices doing little or nothing in any direction" but these articles get the commenters here excited once a week.. :-)
REPORT This comment has been reported. -
So why's it matter? When you bought, you thought that the house was worth the price, so you've got what you paid for. The value of a roof over your head doesn't lessen because of any fluctuation in any market. If house prices fall across the board, then when you move the house that you buy will be cheaper too so you won't lose out. If you borrowed too much and are in negative equity, then that is your own silly fault for being imprudent, and one can be imprudent in many ways, imprudence is independent of the housing market. So unless you are a bank assessing your collateral against your loan book, why would you much care about the price of your house?
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
07 March 2012