House prices fall back as market slows down
HOUSE prices fell by 0.6% during September as the property market continued to show signs of running out of steam, figures revealed today.
The fall, the biggest drop since last December, helped pull annual house price inflation down to 10.7%, its lowest level since May, according to Britain’s biggest mortgage lender Halifax.
But the group played down the decline in prices, saying a mixed pattern of monthly price rises and price falls is a typical feature of a more subdued market.
It added that there is no concrete evidence that the global credit crunch is having an impact on the housing market, although it said it is still early days.
The easing in house prices meant the average cost of a home in the UK continued to hover just below the £200,000 mark at £198,500.
Halifax said house prices had been showing a steady downward trend since the end of 2006, with prices rising by just 0.9% during the third quarter of the year, down from a gain of 2.3% in the second quarter and 3% during the first three months of 2007.
Martin Ellis, Halifax chief economist, said: “The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale will continue to support house prices.”
The figures are in marked contrast to those released by Nationwide Building Society last week which showed house prices rising by a strong 0.7% during September.
But the building society said the underlying trend in growth continued to be that of a slowing market, with annual house price inflation dropping to 9%, its lowest level for nearly a year.
