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House prices drop 1.3 per cent in September

House prices dropped by 1.3 per cent in September making it the smallest monthly fall for seven months, according to the Halifax House Price Index.

The index shows house prices in September were 12.4 per cent down year on year, and 5.2 per cent down in Q3 2008, almost identical to the 5.1 per cent fall in quarter two.

Halifax says this 0.1 per cent slide indicates that the trend rate of decline may be beginning to stabilise.

The average mortgage rate paid by all borrowers dropped from 5.91 per cent in August 2007 to 5.83 per cent in August 2008, while the number of mortgages approved in August was 32,000 compared to 33,000 in July. Completed property sales in August 2008 were 47 per cent lower than in August 2007.

Chief economist Martin Ellis says: “The overall price decrease in the three months to September was very similar to that in the previous quarter, indicating that the trend rate of decline may be beginning to stabilise. The ongoing pressures on householders’ income, combined with the reduction in the availability of mortgage finance, however, mean that market conditions will remain challenging.”

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Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]

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