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House Price Forecasts and Predictions in the UK at 15 Feb 2008


UK House Prices Situation: General stagnation, some falls

UK House Prices Forecast: Moderate falls nationwide in 2008

Halifax Sees No Change in January

The UK's largest mortgage lender, Halifax, has this week published its latest House Price Index, providing an overview of house prices across the UK.

Halifax found that average prices remained unchanged in January, resulting in the average annual rate of increase falling to 4.5%. The report also noted that there were "continuing signs of weakness in housing market activity", citing a 35% fall in the number of house purchase mortgage approvals in the last quarter of 2007 when compared to the last quarter of 2006.

Despite these negative signs, Halifax chief economist Martin Ellis said that the Halifax "expect sound economic fundamentals and lower interest rates to support house prices. Nationally, we predict that house prices will be flat in 2008."

UK House Prices Have Doubled, At Least, In Last Decade

The Halifax's annual county house prices report has found that house prices have doubled - or more - in all 104 of the UK's counties and unitary authorities over the last ten years.

The survey found that in 40% of counties, house prices have risen by three times or more, with the fastest growing county of all being County Armagh, in Northern Ireland.

Surrey was found to be the UK's most expensive county with an average house price of £364,115, while Blaenau Gwent, in Wales, is Britain's most affordable county, with an average house price of just £113,964 - up 211% from its £36,658 average of 10 years ago.

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