House prices fall for third month running

UK house prices fell in November, representing the third consecutive monthly decrease in prices, according to new figures published today (December 5th).

Last month saw a 1.1 per cent drop in the average cost of buying a house, following falls of 0.5 per cent in October and 0.6 per cent in 2006, the statistics published by Halifax indicated.

Buying a residential property in the UK now costs an average of £194,896, the figures stated, almost five per cent less than the level recorded this August, while annual price inflation also fell from 8.9 per cent in October to 6.3 per cent.

Martin Ellis, chief economist at the Halifax, said: "Higher mortgage repayments and falling real earnings have put pressure on households' income, resulting in a slowdown in both house price growth and activity."

"Strong market fundamentals, a structural housing supply shortage and pent-up demand from a large number of potential first-time buyers will support house prices, preventing a sustained and significant fall."

Figures published last week by Nationwide also indicated a fall in UK residential property prices, claiming prices fell by 0.8 per cent last month.

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