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August house prices fall

House prices fell by 0.6 per cent in August according to the latest house price survey from HBOS.

The sharp drop in mortgage approvals in July is consistent with house price inflation in the 10 per cent and 15 per cent area. The Halifax says although it expects house price inflation to slow, the property market continues to be well underpinned by a string economic background, historically low debt-servicing costs and supply shortages.

It is expected the base rate will remain the same for this month.

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