House prices fall in September
Halifax has reported a 3.6% drop in house prices on the past 3 month comparison, including a 0.6% drop in September alone. This has been reported the worst drop in 3 month comparisons on house prices since 1983.
Martin Ellis, Halifax housing economist, suggested the drop could be due to the low transaction levels and an increased number of properties on the market. He continued:
"Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market,".
"These will all be constraints on the market, dampening house prices. On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for homeowners."
However others have questioned the figures, and claimed they have not experienced the same drop.
The figures can be linked with previous research which has suggested that many Britons are now improving their home rather than choosing to move, due to the low housing prices.
7/10/10
