View more on these topics

House prices to remain stagnant in 2010, says Halifax

Halifax predicts the housing market will remain flat through 2010 as prices rose for the fifth consecutive month in November.

The bank says house prices increased by 1.4 per cent in November, after an increase of 1.1 per cent in October. It also says the average house price is up by 4.2 per cent in the first eleven months of 2009. Halifax says prices are still 1.6 per cent lower than November 2008.

It says the average house price in the UK is now £167,664, up from £165,349 in October 2009. Halifax housing economist Martin Ellis says the data available on the UK market suggest that prices will remain flat throughout 2010.

Ellis says slightly higher demand has combined with a low level of properties available for sale to push up prices. Looking forward, he says the prospects for the UK housing market will depend on how the UK economy evolves.

He says: “The recovery in house prices since the spring has been driven by increased demand for property, largely due to the improvement in affordability for existing homeowners and first-time buyers who can raise the necessary deposit.”

Property Portfolio Rescue director Nick Hopkinson says: “With the economy still floundering, the foundations for a market recovery are simply not in place and as soon as stock increases, prices will fall again.

“Tax increases, reducing household incomes and rising unemployment are proving huge stumbling blocks for homeowners who are increasingly falling into serious mortgage arrears, stunting any market activity. We are unlikely to see any real improvement before the end of 2012.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. How would we believe, what anyone from the Halifax has to say, what do they know about anything, if they were any good at all they would not have gone for millions of tax payers money.
    These so called experts make me sick.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm