Halifax reports 1.3% reduction in UK house prices
UK house prices fell by 1.3 per cent in December, according the Halifax house price index.
This means that the average property ended the year 1.6 per cent cheaper than at the start of 2010, at £162,435. The fall in house prices is less that the declines seen in the second half of 2008.
The quarterly comparison in prices, measuring three-month on three-month figures revealed that prices lowered by 0.9 per cent. This measure is seen as one that accounts for any short-term inconsistencies.
The report from Halifax said that uncertainty among both buyers and sellers was evident despite low interest rates. The lender went on to say that it expects "limited movement in house prices during 2011" because interest rates are "likely to remain very low for some time."
Marine Ellis, housing economist for Halifax said: "Looking forward, we expect limited movement in house prices during 2011 but with the risks on the downside. Interest rates are likely to remain very low for some time. This will continue to support a favourable affordability position for those entering the market and limit financial pressure on existing homeowners to sell."
The figures from Halifax contrast with recent figures released by the Nationwide Building Society. Nationwide reported that prices went up slightly in December but predicted that prices will dip in the first six months of 2011.
The monthly comparison is calculated differently by the two lenders. If Halifax used a direct comparison between December 2010 and December 2009, the figures would show a 3.4 per cent fall.
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