Halifax: House prices rise
Published On 8 January 2008
The average price of a house in the UK rose during the month of December, according to new figures.Halifax's house price index revealed that the average price of property increased by 1.3 per cent in the last month of 2007, after three previous months of falls.
This mean that the average annual increase stood at 5.2 per cent - only the second year since 2001 that this figure has dropped below eight per cent.
"This mixed pattern of monthly price rises and falls is a typical characteristic of a subdued market," said Martin Ellis, Halifax chief economist.
"Overall, the housing market continued to slow in the final quarter of 2007 with prices slightly lower than in the preceding quarter. Higher mortgage repayments in response to the series of five interest rate increases between August 2006 and July 2007 and falling real earnings have put pressure on households' income, resulting in a slowdown in both house price growth and activity in recent months."
He added that house prices are expected to be flat during 2008, but supported by "at least" two anticipated interest rate cuts and "strong economic fundamentals".
