Halifax House Price Index says 'market becoming more stable'

Date:Thursday 9th October 2008
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The latest Halifax House Price Index revealed that house prices declined by 1.3 per cent in September - the lowest monthly fall in seven months.

According to the bank, on a national level, house prices declined by 5.2 per cent during the third quarter of 2008. With a 5.1 per cent decrease noted during the second quarter, the bank has asserted that the trend rate of decline could be starting to stabilise.

Meanwhile, the cut made yesterday by the Bank of England could spell good news for borrowers, Halifax asserted.

It claimed that reduced interest rates will be beneficial to mortgage borrowers as they may ease the financial pressures faced by borrowers and will "provide a valuable support to the housing market".

Yesterday, the Association of Mortgage Intermediaries echoed this statement, with director general Chris Cummings stating that the reduced rates will give "a much needed boost" to lending institutions and consumers.

The latest information from Halifax also revealed an improvement in the house price to earnings ratio, which is thought to be a key measure of affordability. The bank announced that it expects the ratio to improve from 5.02 - recorded in July 2008 = to a long-term average of 4.0 as prices continue to soften.