House prices ''fall again''

The property slump continued last month, Halifax''s new house price index has shown.

According to the lender, the value of the typical home was 14.9 per cent below that of November 2007 at the end of last month.

It is also 2.6 per cent below that of October 2008, bringing the typical house price down to £164,000.

The credit crunch and economic downturn hitting homebuyers'' budgets was cited by Halifax as a contributory factor for the continuing downturn.

Commenting, Martin Ellis, chief economist, said: "The combination of high house prices in relation to earnings, constraints on householders'' incomes and spending power and the decline in the availability of mortgage finance since the summer of 2007 has curbed housing demand.

"These factors are major contributors to lower house prices and activity."

However, Mr Ellis also suggested that he had hope for the future.

"Lower house prices, however, mean that a key housing affordability measure – the house price to earnings ratio – is at its most favourable for over five years," he commented.

"There are also signs that the pressures on incomes may be beginning to ease."