Halifax: 2011 Saw House Prices Fall by 1.3%
According to the mortgage lender Halifax, house prices across the UK had fallen by an average of 1.3% in 2011 with December seeing a a drop of 0.9% which took the average house price down to £160,063.
Halifax have predicted that house prices would be stable during 2012 but warned the outlook was ‘uncertain’.
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Martin Ellis, Halifax’s housing economist said “If the UK can avoid recession, we expect broad stability in house prices in 2012. There is however, considerable uncertainty regarding the prospects for the UK economy, which will to a large extent, depend on how events in the eurozone unfold.”
Mr Ellis added “In addition, the extent to which households choose to reduce their debts will also affect growth.”
Building society Nationwide reported at the end of December that house prices had raised last year, but only by 1%.
The property market with the UK during 2011 was stagnant, as lenders continued to ration their lending to possible home buyers and rising unemployment deterred some potential borrowers.
According to official figures, because of this, during the 11 months up to November, sales were running at a level 3% lower than in the same period in 2010.
The Bank of England warned yesterday, that lenders were preparing to become even more stringent with their lending criteria during the beginning months of 2012.
The Bank of England was told by lenders that they were worried that falling house prices might undermine the security of various loans they hade made, and concerned about the worsening state of the economy and its impact on the ability of borrowers to repay.
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