House Prices Rise Slightly In October But Trend Continues Downwards

House prices rose by 1.8 percent in October, however the underlying trend is downwards, according to the latest Halifax House Price Index.

The average house is now valued at £164,919 which is 1.8% higher than in September, however the quarterly change shows that home values have declined by 1.2%.

“The quarterly change gives a better indication of the underlying trend in house prices than the monthly changes”, says Martin Ellis, housing economist at Halifax.

Property prices are still 1.2% higher than this time last year, the Halifax figures show.

Attributing the weakness in the property market to an increase in the number of homes for sale and a decline in demand, Martin Ellis believes that prices will not fall sharply over a sustained period.

This is because “interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners. Low rates and stable employment levels are benefiting homeowners.”