Halifax: House prices down 6.1 per cent

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Halifax: House prices down 6.1 per cent

Thu 10th Jul 2008

Prices of houses fell by 6.1 per cent over the year to June, according to the latest Halifax house price index.

This follows a two per cent fall over the last month.

House prices are now at the same level as in August 2006 and Halifax expects them to drop by nine per cent by the end of the year.

Martin Ellis, Halifax chief economist, said that a "strong labour market , low interest rates and a shortage of new houses underpin housing valuations".

A record 29.55 million people are presently in employment, the Office for National Statistics has found, with total employment having increased by 446,000 over the past year.

But house prices are still falling due to decreased spending power and credit availability, wage rises not meeting retail price inflation and soaring costs of food and fuel.

Average earnings rose by 3.8 per cent in the year to April.

In the same period, the headline rate of retail price inflation rose by 4.2 per cent.

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