House prices fall slightly as market 'treads water'

Halifax figures show a 0.4% monthly decline, in contrast to recent Nationwide data

Halifax says easing inflation should support house prices in the coming months. Photograph: Alamy

House prices fell for a second month running in August and the housing market continues to "tread water", according to the latest monthly report from mortgage lender Halifax.

The average house price was £160,256 last month, which was 0.4% lower than the previous month, Halifax said, cancelling out two previous rises as prices drifted back to levels seen at the end of 2011.

Halifax's housing economist, Martin Ellis, said easing inflation should boost spending power and support house prices in the coming months, but added that the market was expected to remain flat heading into 2013.

The figures are at odds with a recent report by the Nationwide which showed that house prices rose 1.3% in August, their biggest monthly rebound in more than two-and-a-half years. Nationwide also recorded a 0.7% annual fall compared with Halifax's 0.9%.

However, the two lenders use different methodology, with Halifax calculating its annual price change figure by taking an average over three months and comparing that with the same period of the previous year.

House price data has been volatile in recent months with low sales volumes as banks rein in mortgage lending.

Ellis said: "A gradual upward trend in spending power, aided by lower inflation, should help to support housing demand in the coming months. Nonetheless, house prices are likely to remain flat over the remainder of 2012 and into next year."

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "September heralds the start of a final push in property sales before the end of the year, as would-be buyers aim to get into their new homes before Christmas, so we expect to see a pick-up in business in the next couple of months."

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Ditulis oleh: Unknown - Tuesday, May 15, 2012