‘Modest decline’ in house prices continues - Mortgages - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

‘Modest decline’ in house prices continues

‘Modest decline’ in house prices continues

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.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."

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 Any products featured may be withdrawn by their provider or changed at any time.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

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.