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‘Modest decline’ in house prices continues

‘Modest decline’ in house prices continues

Category: Mortgages

Updated: 06/04/2011
First Published: 06/04/2011

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 It is now over 6 months old so the content may be out of date.

The 'modest decline' in house prices is continuing, with prices expected to fall marginally over 2011 as a whole.

Over the first three months of the year house prices fell by an average of 0.6%, compared with the last quarter of 2010.

The three-month-on-three-month rate of change is generally considered to be the best indicator of underlying trends in the property market.

It is the fourth quarter in succession that prices have fallen, although the pace of decline appears to have slowed somewhat, as there were price decreases of 1.0% and 1.1% in the third and fourth quarters of 2010 respectively.

The figures from Halifax show that prices actually registered a small rise of 0.1% in March, meaning the average house price in the UK at the end of the month was £162,912.

Over the last 12 months, prices have fallen by 2.9%, the lowest annual decline recorded since October 2009.

And this trend is expected to continue, according to Martin Ellis, housing economist.

"Our forecast remains for a 2% decrease in house prices in 2011 as a whole," he commented.

"Uncertainty over the general economic outlook and individual financial circumstances are likely to constrain housing demand, resulting in some modest downward pressure on prices."

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