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UK house prices hit three-year low

UK house prices hit three-year low

Category: Mortgages

Updated: 04/10/2012
First Published: 04/10/2012

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 It is now over 6 months old so the content may be out of date.

Latest statistics have revealed UK property prices dropped for the third consecutive month during September, hitting the lowest level since June 2009.

According to the latest Halifax House Price Index, the average house price fell by 0.4% between August and September to £159,486.

The current figure is the lowest recorded by Halifax since June 2009 when the average price hit £158,445.

High property prices combined with high mortgage rates and large deposits have resulted in millions of prospective buyers being priced out of the market.

A downturn in property prices combined with lower rates will offer some much needed hope to frustrated buyers, particularly those looking to get onto the property ladder.

Research by Moneyfacts.co.uk has found that over the past year the average five-year mortgage rate has tumbled, offering 5.53% today compared with 5.87% in October 2011.

In line with rates reducing, the number of 90% loan-to-value mortgages has grown from 256 to 297, offering a lifeline to those with limited deposits.

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