Latest house price figures present a mixed picture. According to the Halifax, prices fell 2.4% over the last 12 months, leaving the average price of a home in the UK at just over £164,000.

Coming after similar figures from the Nationwide, the overall impression is of a sluggish property market. But the reported quarterly falls are at the low end of expectations, and well below those seen in the depths of the recession.

The Halifax also reports a slight increase in activity, with house sales up by 38,000 – though at 884,000 the total remains very low by historical standards.

The figures were in line with the trend, noted by the Royal Institution of Chartered Surveyors, for homeowners to hold back from putting their properties up for sale. This should itself work against dramatic falls in prices.

For many, the opportunity to remortgage is proving a more attractive option than braving the property market, and going to the trouble and expense of moving. Remortgaging can release funds to improve existing accommodation, or make staying put more affordable given the competitive deals available.

Halifax housing economist Martin Ellis commented that he expected interest rates to remain low, “supporting a favourable affordability position for many existing mortgage borrowers and those entering the market.”

Tags: Companies, Headlines, Housing Market, Mortgage Rates

This entry was posted on Sunday, February 6th, 2011 at 9:27 pm and is filed under Current Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.