House prices fell 0.50% in October
According to the Halifax, house prices fell by 0.50% in October, taking the annual rate of house price inflation down from 10.7% in September to 8.9% and the average house price to £197,248. Halifax expects annual inflation to decline further over the next few months as the strong monthly house price gains during the autumn of 2006 drop out of the year-on-year comparisons. Activity too, is declining. Mortgage approvals to fund house purchases fell by 6% in September and new buyer interest fell for the tenth consecutive month. “The rise in interest rates since August last year and negative real earnings growth so far this year are curbing housing demand, leading to a slowdown in both price growth and activity,” said chief economist Martin Ellis.
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