Halifax warns of price falls

Posted: 08 Jan 2007 10:52:57 GMT

Halifax has become the most highly-regarded analyst to warn of falls in the housing market, saying that average prices in the UK fell one per cent in December

Halifax has become the most highly-regarded analyst to warn of falls in the housing market, saying that average prices in the UK fell one per cent in December.

Despite the drop, the final quarter of the year recorded the highest level of growth for 18 months said Halifax, up 4.2 per cent between October and the end of December.

The average home in the UK is now worth £186,954, up 9.9 per cent on the same period of last year. Northern Ireland had the highest gains at 52.9 per cent.

"Continued economic growth, rising employment and an ongoing lack of supply will continue to drive up house prices over the coming months," said Martin Ellis of Halifax.

"Higher interest rates, greater pressure on household finances and subdued real earnings growth will, however, constrain housing demand.

"We expect house prices to increase by four per cent in 2007."

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