House Price Update to 10 November 2010

UK House Prices Situation: Little change in most areas

UK House Prices Forecast: Ongoing weakness likely in many areas

Halifax Reports 1.8% Improvement in October

Average house prices rose by 1.8% in October, according to the latest figures from Halifax. This figure, based on agreed mortgage deals for Halifax customers, provides some positive news for homeowners but the overall picture is not so good.

Prices fell by 1.2% in the three months to October; Halifax housing economist Martin Ellis said "this measure gives a better indication of the underlying trend than the monthly changes."

According to the latest Halifax report, average house prices have risen by just 1.2% over the last year. Halifax housing economist Martin Ellis said that the "increase in the number of properties for sale in recent months, together with a decline in demand, has put some downward pressure on [house] prices in recent months. We do not believe that prices are set to fall sharply over a sustained period."

RICS Reports Falling Prices and Weaker Demand

The latest RICS housing survey has found that more surveyors are seeing falling prices than rising. In October, 49% more surveyors reported falling prices than rising prices – the lowest reading since April 2009. In addition, demand continued to weaken with new buyer the net balance of surveyors reporting a fall in new buyer enquiries dropping from -2 to -12.

Newly-agreed sales also dropped sharply, with the net balance falling from 0 to -12, and transaction levels fell slightly too. The average number of sales per surveyor fell from 16.7 in September to 15.2 in October. The long-run average is 26.8.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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