Halifax says mortgage holders will not see 'significant' drop in house prices

Date:Thursday 9th December 2010
Author: Susanna Kavka

A housing expert at Halifax has predicted that mortgage holders in the UK are unlikely to see their property values plummet.

Martin Ellis, housing economist at the firm, made his comments after the company published its monthly house price index, which showed a monthly fall of 0.1 per cent from October to November.

Mr Ellis suggested that a pattern of homeowners becoming reluctant to put their houses on the market will help property values.

He suggested another important factor could be the lending environment, explaining: "Interest rates are likely to remain very low for an extended period, which will support the improved mortgage affordability position for homeowners."

The Halifax house price index showed a year-on-year reduction of 0.7 per cent, with the average property worth £164,708.

Last month, the company revealed the average rural house increased in value by 96 per cent from 2000 to 2010 - a mark-up of more than £100,000 in many cases.