Halifax: House prices down again
Posted 2008-03-6
The latest property survey by Halifax has found that house prices fell once again in February. Asking prices for the average property in the UK now stands at £196,649, Halfiax claims, with the annual rate of inflation falling by 0.3 per cent to 4.2 per cent. Unlike some other analysts, however, Halifax is not predicting that average annual house prices for 2008 will fall against last year, reflecting its belief that the market remains capable of weathering the current downturn. "Whilst the housing market has slowed over the past six months, it is supported by sound economic fundamentals," commented Halifaxs chief economist Martin Ellis. Those comments have largely been supported by Nationwide, who recorded four consecutive house price falls up to February but is still advising homebuyers and investors not to hit the panic button. "If the Bank of Englands central projection that the economy continues to grow is correct, conditions for the UK housing market are perhaps less gloomy than some would have us believe," Nationwides chief economist recently said. Analysts have blamed the short-term downswing on falling mortgage approvals and wider jitters over the credit crunch.
March 9th, 2008 at 5:39 am
Good news that 2 of the big commentators like Halifax and Nationwide are not predicting a big fall. I have read that some commentators are predicting house prices to fall by 35% between now and 2012!