House prices rebound but Halifax stresses overall decline

House prices rose 1.8% in October but three month trend shows a falling market.

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by Chris Marshall on Nov 04, 2010 at 10:53

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House prices rebound but Halifax stresses overall decline

House prices rebounded in October, rising 1.8% after September’s unexpectedly sharp 3.7% drop, according to Halifax.

However, the bank reported that over three months prices are 1.2% lower. This measure, it stresses, gives a better indication of underlying trends.

The downward trend, which is backed up by other house price watchers such as Nationwide building society, stems from an increase in the number of properties on the market against a drop in demand.

Halifax notes that ‘all the major house price indices are indicating an underlying slowdown in house prices notwithstanding a divergence in monthly reporting.’

It does not however expect prices to fall sharply over a sustained period. Martin Ellis, Halifax housing economist, said: ‘Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners. Low rates and stable employment levels are benefiting homeowners.’

The Bank of England’s rate-setting committee will today announce whether it will do more to stimulate the economy. With the base interest rate already at the historic low of 0.5%, the Bank’s remaining weapon is its printing presses, but another bout of quantitative easing, or ‘QE2’, such as the US has announced, is not expected to be announced today after upbeat economic data for the UK.

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6 comments so far. Why not have your say?

It always was a statistical cock up. Neither of the last 2 months figures are correct although the effect of one mistake cancelling out the other does bring it back in line with the Nationwide data.

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oh no not again lol

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this country is stuffed as a turkey. They have spent money and more money. They have pumped the economy since 2001 rather than allow it to be stable. They pumped after the dot com boom, pumped even more into the housing boom and now pumping into the NONE boom.... Of course the next boom as they need to create something else what's the purpose will be the energy boom for the next 20 years. Watch this space. All in all this countrym its currency and value of money has been devalued considerably by supposidly low inflation(not) and constant flows of money.. House prices should have never risen so far, but they allowed it... Tax credits created a fake economy and cost of living. Labour stuffed everyone. Idiots.

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so true labour stuffed everyone..

A yes signing all our rights away so blair could become president of europe.

and then his ( lets sell all our gold and sign every contract even if we cannot afford it brown. ) ...what a pair..

left us all to try and sort out there mess..

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ugh, it's going to be a while before we sort this mess out. Things seem to be going from bad to worse and no sign of the end yet. VAT is going up to 20% soon as well.

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Dislexic Landlord

Nov 05, 2010 at 15:15

FAO Portugalproperty deals

you are so right when you say the market is going to get worse and nobody can honestly say when it will improve

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