House prices edging down despite January bounce
Monday, 6 February 2012 9:30 AM
House prices are down 1.8 per cent on a year ago despite a 0.6 per cent rise in January, according to the Halifax house price index.
The bank said the UK average price of £160,907 was back at the level seen in May 2011 with low interest rates continuing to support the market.
Average mortgage payments are now at their lowest proportion of disposable earnings for a new borrower for 14 years.
Meanwhile mortgage approvals in the last three months of 2011 were three per cent higher than in the previous quarter and 16 per cent up on a year ago.
The rise in house prices in January was the second monthly increase in the last six months but the first since October. The annual rate has been edging down in the last two months but is still above the recent low point of -4.2 per cent in May 2011.
Martin Ellis, Halifax housing economist, said: "Prospects for house prices over the coming months will, to a large extent, depend on events in the Eurozone and the repercussions of developments there for the UK economy.
"If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012."
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