House prices fall by 1.3% in 2011 - Mortgages - News - Moneyfacts


House prices fall by 1.3% in 2011

House prices fall by 1.3% in 2011

Category: Mortgages

Updated: 06/01/2012
First Published: 06/01/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices fell by 1.3% in 2011, although experts say that values 'held up well' in the face of challenging conditions.

Figures from Halifax show that the average price of a home in the UK dropped from £163,665 in December 2010 to £160,063 in December 2011 – a decline of 1.3%.

However, the annual rate improved markedly from the middle of 2011, with a yearly drop of 4.2% recorded in May 2011.

And Martin Ellis, housing economist says that the figures represent only a modest contraction given the state of the wider economy.

"House prices held up well last year in the face of the difficult and deteriorating economic climate and substantial pressure on households' finances," he commented.

"If the UK can avoid recession, we expect broad stability in house prices in 2012.

"There is, however, considerable uncertainty regarding the prospects for the UK economy which will, to a large extent, depend on how events in the Eurozone unfold."

Housing market conditions were little changed over the last 12 months, with the ratio of house sales compared to unsold properties remaining broadly unchanged since November 2010.

It is this stability in supply and demand which has helped underpin only modest movement in house prices over 2011.

Towards the end of the year there was a slight rise in the number of homes being sold.

Indeed, the number of sales in November 2011 was the highest since December 2009, at a seasonally adjusted 79,000.

But despite these recent signs of improvement, total sales in the first 11 months of 2011 were 2.5% lower than in the same period of 2010.

On a monthly basis, house prices fell by 0.9% in December, finishing a most unpredictable year; over the course of 2011 there were six monthly falls, five increases and one month where prices were unchanged.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.