6 November 2001, 10:18 UK Oct house prices dn adj 0.5 pct from Sept; up 9.4 pct yr-on-yr - Halifax
LONDON (AFX) - UK house prices fell a seasonally-adjusted 0.5 pct
on the month in Oct and were up 9.4 pct from a year earlier, according
to the latest monthly survey released today by the Halifax PLC.
Sept house prices were unchanged on the month but up 8.3 pct
year-on-year. Commenting on the figures Martin Ellis, Halifax Group
Economist, said: "House prices fell by 0.5% in October.
While this was the first monthly fall in 2001, it was smaller than
the decline recorded in October last year. As a result, the annual rate
of house price inflation increased, from 8.8 pct in September to 9.4
pct, Ellis added.
Ellis said house price movements over the past few months as a whole
indicate a clear downward shift in the underlying trend, with prices
increasing at a somewhat slower pace compared with earlier in the year.
This is consistent with reports from estate agents and
house-builders and the latest market figures on the number of mortgage
approvals, which all show signs of a slowdown in housing market
activity, Ellis added.
This weakening in the housing market is largely in response to the
general easing in the pace of economic activity this year, with the
softening in consumer confidence since the summer and the recent fall
in employment likely to have been particularly important factors. A
knock to confidence in the immediate aftermath of September's terrorist
attacks in America may also have contributed to last month's small fall
in prices, Ellis said.
Looking ahead, continuing economic growth, low interest rates and
housing affordability levels that are not stretched should support the
housing market. We expect house prices to continue rising over the
coming 12 months, albeit at a more modest pace," Ellis said.
According to the Halifax, the standardised average house price fell
to an adjusted 93,616 stg in Oct from 93,986 stg the previous month.
© 1999-2024 Forex EuroClub
All rights reserved