House prices rise 1.8% in October

House prices in the UK rose by 1.8 per cent in October, according to the latest Halifax House Price Index.

The average house price now stands at £164,919, 2.3 per cent lower than at the end of 2009.

Over the three months to October, house prices stood at 1.2 per cent lower than the previous quarter.

Martin Ellis, housing economist at Halifax, said: "The rate of decline in prices on the three month-on-three month measure is markedly less than the quarterly declines of more than five per cent recorded during the second half of 2008."

He added that an increase in the number of properties available coupled with a decline in demand have put downward pressure on prices in the past few months.

"We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners," Mr Ellis continued.

Recent research from property site Zoopla.com highlighted that sellers are slashing up to 6.1 per cent off the price of their property to secure a buyer.
 

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2010-11-04 16:37:30 © Moneyextra.com