Flat house prices likely to remain, predicts Halifax

Halifax has predicted that flat houses prices will remain for some time.

The mortgage lender commented that although the pace of price falls has increased over the last few months, it is far from the levels seen in the second half of 2008.

According to the Halifax House Price Index, average prices fell by 0.1 per cent in November. This was less than economists expected but the three-month measure stands 2.1 per cent below that of the three months to the end of October.

"Higher numbers of properties for sale, combined with reduced demand, have caused the recent decrease in prices. There are, however, some tentative signs that homeowners are becoming more reluctant to put their properties on the market which, if continued, will help to relieve the current downward pressure on prices," Martin Ellis, Halifax housing economist, said.

Lucian Cook, director of residential research at Savills, recently revealed that there is a "widening gap" between potential first-time buyers of mortgages and those who already own a house.

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2010-12-09 16:49:57 © Moneyextra.com