Halifax figures show house prices rose in October
Monday, 07 November 2011 10:34
New figures on house prices released by the Halifax show that the average cost of a property increased by 1.2 per cent in October 2011 to £163,311.
However, when comparing the three months to October with the previous quarter, prices were found to be down by 0.3 per cent, the first time since June that downward movement has been recorded.
It was also noted that the figures were down by 1.8 per cent when examined against those from the same three months in 2010.
Halifax housing economist Martin Ellis pointed out that this fall is significantly less than the 4.2 per cent decrease seen in May 2011, with the property market supported by a rise in the number of homes coming up for sale and low interest rates.
"The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies," he commented, adding that there has been very little change in overall asking prices this year.
However, chief UK & European economist for IHS Global Insight Howard Archer said it is important to take this month's figures in context.
"We hugely doubt that October's spike up in house prices heralds the start of a sustainable pick-up in house prices. We suspect it will prove to be a temporary spike.
"[This] does little to change our view that house prices are headed down over the coming months [and] could well fall by more than five per cent given the current deteriorating economic situation and outlook," he commented.
This came after the Halifax revealed that there had been a 2.3 per cent dip in property asking prices when it compared the three months to September 2011 and the three months to September 2010.
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