View more on these topics

House prices fall 2.4% in May, says Halifax

House prices fell by 2.4 per cent in May, with prices 3.8 per cent lower on an annual basis according to the Halifax house price survey.

The lender says the decline in prices is caused by the difficulties created for potential house purchasers by the rapid rise in house prices in the last few years. A squeeze on spending power and a reduction in credit availability has also curbed housing demand.

Halifax says high employment levels, low interest rates and a shortage of new homes support housing valuations. It points out that employment increased by 117,000 in the three months to March compared with the preceding quarter and stands at a record high of 29.54 million.

Chief economist Martin Ellis says: “House prices fell by 2.4 per cent in May. Price falls should be measured against the significant gains in recent years. The average UK house price rose by more than £88,000, or 79 per cent, between August 2002 and August 2007.”

Halifax says it expects unemployment to rise during the year due to an easing in growth but it points out that the scale of the increase in unemployment is unlikely to cause widespread difficulties for households.

Recommended

The CBI became approachable

FSA chairman in waiting Adair Turner is widely credited with building a friendly relationship between the Confederation of British Industry and New Labour during his time as CBI director general.

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment