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TSH News
House Prices
Thu Dec 4 2008
House prices still falling fast
The Halifax, part of HBOS, is being taken over by Lloyds TSB
House prices fell another 2.6% in November, the Halifax says.
According to its latest survey, that increased the annual rate of house price falls to 14.9%.
The Halifax said that on its calculations, the average property in the UK was now valued at £163,605, a level last seen in July 2005.
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| week, the Nationwide building society said the pace of house price decline had eased off, with prices down 13.9% in the year to October.
"The combination of high house prices in relation to earnings, constraints on householders' incomes and spending power, and the decline in the availability of mortgage finance since the summer of 2007 has curbed housing demand," said the Halifax's chief economist, Martin Ellis.
The lender's calculation suggests that the average house price has now dropped by £31,485 in the past 12 months.
It calculates the annual rate of decline by comparing the average house price over the past three months with the average for the same three-month period the year before.
A straightforward monthly year-on-year comparison suggests that prices may have fallen even faster, by 16.1%, although the lender argues that this approach can be distorted by short-term price fluctuations.
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