Halifax: House prices fall in October


Fri 9th Nov, 12:07:00 GMT

UK house prices fell by 0.5 per cent in October, new figures have revealed.

According to the Halifax, the average cost of a home now stands at £197,248, with the annual rate of house price growth falling from 10.7 per cent in September to 8.9 per cent in October.

Martin Ellis, chief economist at the Halifax, said: "The rise in interest rates since August last year and negative real earnings growth so far this year are curbing housing demand, leading to a slowdown in both price growth and activity."

However, he added that with the UK seeing high levels of employment and a property shortage, house prices would continue to be supported.

Figures covering the period between July and the end of September also revealed that house prices continue to be steadily heading downwards, the firm said.

This appears to support the predictions of other analysts who suggest that the housing market will continue to slow down in 2008.

A report released this week by economic analysis firm Experian claimed that the effect of the credit crunch and recent interest rate rises are the prime factors behind the trend, with the firm''s Andrew Burrell commenting: "Over the next two years, house prices are forecast to record the lowest annual increase since the mid-1990s."ADNFCR-1143-ID-18349617-ADNFCR


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