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08/01/2008
House Price Trend Is Down In Subdued Market
House price inflation fell sharply at the end of last year according to the Halifax bank, the country's biggest mortgage lender, prices were rising at an annual rate of just 5.2% in December, half the rate seen just three months earlier.
Although prices actually went up by 1.3% during December, the Halifax said that was the first time there had been an increase in the past four months. This took the value of the average UK home to £197,039.
It's not unexpected as since last summer, the market has been going through a sharp slowdown, partly under the impact of higher interest rates.
"This mixed pattern of monthly price rises and falls is a typical characteristic of a subdued market," said Martin Ellis, Chief Economist at the Halifax.
"Overall, the housing market continued to slow in the final quarter of 2007 with prices slightly lower than in the preceding quarter," he added.
The lender predicts that house prices will slow down even more this coming year and while it expects them to be flat over the course of 2008, it anticipates the Bank of England will cut interest rates twice in the next 12 months in response to the slowdown in the wider economy.
Malcolm Barr, an economist at the bank JPMorgan Chase, said: "We continue to be surprised at the speed in which momentum in house price gains has faded."
"That lenders have begun to cite the expectation of house price falls as a reason to tighten credit availability, and the data have moved to confirm those expectations, remains a significant worry," he added.
The fact is that houses had become increasingly unaffordable for many potential owners, choked off demand in the market by keeping out many potential first-time buyers.
The Halifax recently reported that there were just 300,000 first-time buyers last year, the lowest level since 1980.
Figures from the Council of Mortgage Lenders (CML) showed that, in November, first-time buyers who did take out a loan borrowed an average of 3.33 times their incomes.
That was the third month in a row that the income multiple of these borrowers has fallen, down from a record of 3.39 times income that was reported in July and August.
"Affordability in the mortgage market continued to show some resilience to tightening credit market conditions," said the CML's Director General Michael Coogan.
"At a time of global market uncertainty, business levels in the mortgage market are holding up reasonably well in the UK despite funding constraints," he concluded
(BMcC)
Although prices actually went up by 1.3% during December, the Halifax said that was the first time there had been an increase in the past four months. This took the value of the average UK home to £197,039.
It's not unexpected as since last summer, the market has been going through a sharp slowdown, partly under the impact of higher interest rates.
"This mixed pattern of monthly price rises and falls is a typical characteristic of a subdued market," said Martin Ellis, Chief Economist at the Halifax.
"Overall, the housing market continued to slow in the final quarter of 2007 with prices slightly lower than in the preceding quarter," he added.
The lender predicts that house prices will slow down even more this coming year and while it expects them to be flat over the course of 2008, it anticipates the Bank of England will cut interest rates twice in the next 12 months in response to the slowdown in the wider economy.
Malcolm Barr, an economist at the bank JPMorgan Chase, said: "We continue to be surprised at the speed in which momentum in house price gains has faded."
"That lenders have begun to cite the expectation of house price falls as a reason to tighten credit availability, and the data have moved to confirm those expectations, remains a significant worry," he added.
The fact is that houses had become increasingly unaffordable for many potential owners, choked off demand in the market by keeping out many potential first-time buyers.
The Halifax recently reported that there were just 300,000 first-time buyers last year, the lowest level since 1980.
Figures from the Council of Mortgage Lenders (CML) showed that, in November, first-time buyers who did take out a loan borrowed an average of 3.33 times their incomes.
That was the third month in a row that the income multiple of these borrowers has fallen, down from a record of 3.39 times income that was reported in July and August.
"Affordability in the mortgage market continued to show some resilience to tightening credit market conditions," said the CML's Director General Michael Coogan.
"At a time of global market uncertainty, business levels in the mortgage market are holding up reasonably well in the UK despite funding constraints," he concluded
(BMcC)
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UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
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Halifax announces surprise rise in house prices
The Halifax have announced that UK house prices rose by 1.1% in December, in spite of recent evidence which showed that the housing market in the UK is slowing down. The report concluded that there were "continuing signs of a genuine slowdown in the housing market". The Halifax stated that house prices in the final quarter of 2004 were only 0.
Halifax announces surprise rise in house prices
The Halifax have announced that UK house prices rose by 1.1% in December, in spite of recent evidence which showed that the housing market in the UK is slowing down. The report concluded that there were "continuing signs of a genuine slowdown in the housing market". The Halifax stated that house prices in the final quarter of 2004 were only 0.
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Strong house price rises in January
The UK housing market made a strong start this year, with prices rising by 1.4% - the biggest monthly increase in 18 months - the Nationwide reported. The increase took the annual rate of price growth to 4.4% and put the average price of a UK home at £158,478.
Strong house price rises in January
The UK housing market made a strong start this year, with prices rising by 1.4% - the biggest monthly increase in 18 months - the Nationwide reported. The increase took the annual rate of price growth to 4.4% and put the average price of a UK home at £158,478.
12 December 2005
House price inflation drops
Annual house price inflation dropped again in October, according to the latest figures from the Office of the Deputy Prime Minister. House price inflation was 2.2% in October, a fall from September’s figure of 3.3%. The ODPM reported that the average house price in the UK was £186,103 in October, compared with £186,755 in September.
House price inflation drops
Annual house price inflation dropped again in October, according to the latest figures from the Office of the Deputy Prime Minister. House price inflation was 2.2% in October, a fall from September’s figure of 3.3%. The ODPM reported that the average house price in the UK was £186,103 in October, compared with £186,755 in September.
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