House prices drop 1.4% according to Halifax



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Halifax believe that weak household confidence contributed to a fall in UK house prices in April, 1.4% down on March.

Halifax, one of the largest mortgage lenders in the UK, revealed that their latest results were following a path of “modest decline.”

Halifax also noted that house prices were down 3.7% on the same month last year, as the average home now costs just £160,395.

House prices were also down for the quarter, February to April, 1.2% on the three months before hand.

Housing Economist from the firm, Martin Ellis said, “Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices.”

“The latest figures show that the underlying trend in house prices continues to be one of modest decline.”

However, he said low mortgage rates and an increase in the number of people with jobs were likely to curb the pace of house price decline.

“There are signs that house sales are stabilising albeit at a level lower than the historical average,” he added.

Halifax offer figures based on their own sales, whilst the Land Registry are widely seen to offer the most accurate figures, surveying a wider range of surveyors.

They saw a smaller decrease in house prices, suggesting that they had fallen by just 2.3% compared with the month of March the year before.

The Land Registry also publish figures a month behind, and they revealed that only London was seeing an increase in house prices.

Howard Archer, a chief economist from HIS Global Insight said, “It is clear that critical to the development of house prices over the coming months will be the amount of houses coming on to the market, mortgage availability, how well the economy and jobs hold up as the fiscal squeeze increasingly kicks in, and what happens with interest rates.”

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