Slight drop in house prices

House prices from September to November were 0.7% lower than in the previous three months

Alex Johnson
Thursday 06 December 2012 10:42 GMT
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The figures from Halifax represent the sixth consecutive fall and are 1.3 per cent lower than in the same period last year. House prices in November were virtually unchanged compared with November 2011 at an average of £160,879.

Martin Ellis, Halifax housing economist, said: "Both demand and supply pressures in the market have altered little during the course of 2012, and this has been the key reason for the lack of anything other than modest changes in house sales and prices at a national level compared with a year ago. Challenging economic conditions have constrained housing demand whilst low interest rates have helped to support affordability and demand.

"There are signs that the Funding for Lending Scheme (FLS) is helping to reduce mortgage rates and may be contributing to the recent pick-up in mortgage approvals. The FLS should help to ease credit constraints, resulting in some improvement in mortgage availability in 2013."

Ellis added that he expected continuing broad stability in house prices nationally in 2013, with house prices likely to be strongest in London and the South East.

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