House prices fell by 0.1 per cent in November, according to Halifax’s latest house price index.
On an annual basis, house prices were down 0.7 per cent. This was the first annual decline since November 2009 and continues the recent downward trend from a high of 6.9 per cent in May.
Prices were 2.1 per cent lower in the three months to November than the previous quarter.
House prices in November were 6.5 per cent higher than the trough the market reached in April 2009. The average house price now stands at £164,708, £10,045 higher than in April 2009.
Halifax says mortgage approvals for house purchase fell for the sixth month in a row in October. The number of approvals in October – 47,200 – was 5 per cent lower than in April – 49,700.
Halifax housing economist Martin Ellis says: “Higher numbers of properties for sale, combined with reduced demand, have caused the recent decrease in prices. There are, however, some tentative signs that homeowners are becoming more reluctant to put their properties on the market which, if continued, will help to relieve the current downward pressure on prices.
“Interest rates are likely to remain very low for an extended period, which will support the improved mortgage affordability position for homeowners. As a result, we do not expect to see a significant fall in house prices.”