View more on these topics

House prices fell by 0.9% in December

UK house prices fell by 0.9% in December to an average of £160,063, according to the latest house price index from Halifax.

This represents a year-on-year decline of 1.3% and means that prices fell by 0.1% in the three months to December, compared to the previous quarter.

Martin Ellis, housing economist at Halifax, says while there was a modest fall in prices during 2011, overall property values have held up well in the face of a worsening economic climate and considerable pressures on household finances.

He says: “If the UK can avoid recession, we expect broad stability in house prices in 2012. There is, however, considerable uncertainty regarding the prospects for the UK economy which will, to a large extent, depend on how events in the eurozone unfold.

“In addition, the extent to which households choose to reduce their debts will affect growth. As a result, the outlook for house prices is uncertain.”

Recommended

Coventry offers ERC-free letting deals

Coventry Intermediaries has launched a new range of mortgage products, including some five-year buy-to-let deals with no early repayment charges. The lender is introducing a buy-to-let five-year fix at 5.35%, which is available up to 75% LTV with a £250 booking fee and £999 arrangement fee, and no ERCs.It is also offering the same product […]

IMLA members expect hard conditions in 2012

The Intermediary Mortgage Lenders Association is expecting gross mortgage lending of no more than £130bn in 2012, some £3bn lower than the Council of Mortgage Lenders’ prediction. In December 2011 the CML downgraded its forecast for 2012 from £150bn to £133bn. Lenders have yet to reveal their figures for 2011, but gross lending is expected […]

Service sector growth brings economic hope

Greater than expected growth in the service sector in December has raised hopes that the UK economy can avoid a contraction in Q4 2011. The Markit/Chartered Institute of Purchasing and Supply Purchasing Managers’ Index recorded a reading of 54 for December, up from 52.1 in November. Readings above 50 indicate growth. Chris Williamson, chief economist […]

Newsletter

News and expert analysis straight to your inbox

Sign up