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House prices down 1.2% in August

House prices fell by 1.2% in August to an average of £161,743, according to the latest Halifax house price index.

The average house price in August was 2.6% lower than in August 2010, but prices increased by 1.0% in the three months to August compared to the previous three months.

Martin Ellis, housing economist at Halifax, says: “The underlying trend, as measured by the latest three months compared with the preceding three months, showed a modest improvement in house prices for the second consecutive month in August.”

He says that current low sales volumes make house prices volatile from month to month, meaning that the quarterly change gives a more reliable indication of the market than the figure for August alone.

He adds: “A recent decline in average mortgage rates has further boosted home affordability for those able to raise a deposit to make a new purchase.

“Low interest rates are likely to continue to support the market whilst increased uncertainty about the economic outlook and pressures on householders’ finances constrain demand. Overall, we expect broad stability in both prices and activity over the coming months.”

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  • Bill Wells 7th September 2011 at 7:08 pm

    If the BBC was doing the reporting it would be “£billions wiped off the value of UK homes in August” – when are these institutions going to realise that they are partly responsible for all the gloom and despondency and, as a result, our continuing economic woes.

  • Brian Abram 7th September 2011 at 3:16 pm

    Statistics, etc, etc. I agree Mark. Given that the Halifax Index purports to describe a national trend and is driven by valuation data from house purchases only and therefore probably just a few thousand examples across the whole UK it is unlikely to be statistically reliable.

  • Mark C 7th September 2011 at 10:41 am

    Why not the headline ” 1% rise in the last quarter” Just as valid. Probably more so.
    Much better for all if a positive slant rather than everything being negative was portrayed to the public.
    Statistics etc etc !!