The bank's latest house price index shows a property market going nowhere fast amid continued economic uncertainty.
House prices fell by 0.1% in the final quarter of 2011, according to Halifax’s latest house price index. And prices were down by 0.9% in December compared to November.
The quarterly drop also meant prices were down by 1.3% in the final quarter of 2011 compared to the same period in 2010.
The housing market has remained static since November 2010, with supply and demand balancing as fewer people put their homes up for sale and potential buyers hold fire or struggle to get a mortgage.
Halifax’s house price figures for 2011 broadly mirror that trend, with six months of falls, five months of increases and one month where prices were unchanged.
Halifax says the number of completed sales in November 2011 was the highest since December 2009. However, overall sales to November 2011 were 2.5% lower than in the same period in 2010.
Martin Ellis, Halifax’s housing economist, commented: “If the UK can avoid recession, we expect broad stability in house prices in 2012.”
However, he added: “There is, however, considerable uncertainty regarding the prospects for the UK economy which will, to a large extent, depend on how events in the Eurozone unfold. In addition, the extent to which households choose to reduce their debts will also affect growth. As a result, the outlook for house prices is also uncertain."
The Bank of England yesterday warned that mortgage lending was likely to get tighter this year due to the ongoing crisis in the Eurozone. It also said that lenders were going to toughen up their credit scoring for potential borrowers.
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