7
Nov
HOUSE PRICES UP 1.2% IN OCTOBER
UK house prices rose by 1.2% in October compared with September,
but have fallen over the last year, according to the Halifax.
The lender, part of Lloyds Banking Group, said that values had
fallen by 1.8% compared with a year ago.
It said that the housing market had remained "highly resilient"
despite weakness and a deteriorating outlook for the UK
economy.
The average home in the UK was valued at £163,311, the
Halifax said.
Its house price survey is based on its own mortgage data.
'Resilient'
The Halifax said that there was a 0.3% fall in prices in the three
months to the end of October compared with the previous quarter.
This was the first time this measure has recorded a fall since
June.
Martin Ellis, Halifax's housing economist, said that this was an
indication of the general stability of prices, despite the
month-on-month figures having shown some volatility during the
year.
"The housing market has proved highly resilient in recent
months, despite the weak economic recovery and the deterioration in
the outlook for both the UK and global economies," he said.
"The prospect of exceptionally low official interest rates over
the foreseeable future is likely to continue to support the market
in the face of a very difficult economic climate.
"Both prices and activity levels are expected to remain close to
current levels over the coming few months."
The survey's findings are similar to the picture painted by the
Nationwide Building Society. A week ago, it said that UK house
prices were "treading water".
The Nationwide said the annual change in October was a 0.8%
rise.
However, the year-on-year comparison is calculated slightly
differently by the two lenders. The Halifax compares the previous
three months with the same three months a year earlier to give a
smoother comparison, rather than a direct comparison of the
equivalent months.