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Halifax figures reveal biggest drop ever in house prices

Jude Buttle

The latest house price index from the Halifax shows that average property prices in the UK continued to fall during August.

House prices dropped again in August, by 1.8%, with the annual decline in prices now 10.9% over the last three months and 12.7% for the 12 months following August 2007, according to the Halifax.

Halifax warned homeowners that market conditions will remain challenging, as it revealed that the annual decline is the steepest it has ever recorded - since it began compiling data in 1983.

Their figures also show that the average price of UK property now stands at £174,178, returning to the level it was at in February 2006.

Martin Ellis, chief economist at the Halifax, stated: "The pressure on householders' income, together with the reduction in the availability of mortgage finance due to the global financial markets crisis, is resulting in both lower property prices and activity levels.

"This week's announcement on stamp duty is a welcome development and will benefit a significant number of homebuyers, particularly outside the south east of England. Market conditions, however, will remain challenging."

To read the full report from the Halifax CLICK HERE

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