House prices fall
Thursday, 04 Oct 2007 08:58
House prices fell in September, Halifax claims
House prices in the UK fell by 0.6 per cent in September, according to new research published today.
The fall saw the annual rate of house price inflation slump to 10.7 per cent over the quarter to last month, down from 11.4 per cent in August.
Analysts said the sharp fall in property prices recorded by Halifax would boost arguments for the Bank of England to cut
interest rates.
While recent surveys have painted a mixed picture of the state of the housing market, most economists agree that the sector is set for a slowdown in the coming months.
Earlier this week property intelligence firm Hometrack said its latest survey showed that
house prices remained unchanged for the second month in a row during September.
Nationwide previously reported that property prices climbed by 0.7 per cent last month, but warned that the market was set to slow in the longer term in the wake of the ongoing global credit crunch.
"Evidence is mounting that the housing market is now cooling markedly in the face of the financial market turmoil and the increasing affordability pressure on house buyers coming from higher interest rates, elevated house prices and modest real disposable income growth," said Global Insight chief economist Howard Archer.
Halifax said its figures were consistent with a slowdown in the housing market.
"September's price fall is consistent with the normal behaviour of the market during a slowdown," said Halifax chief economist Martin Ellis.
"A mixed pattern of monthly price rises and falls is a typical feature of a more subdued housing market," he added.
However he stressed that high levels of employment and a shortage in the number of properties available for sale would continue to support house prices in the long run.