Halifax House Price Index (8033W)
06 February 2012 - 7:00PM
UK Regulatory
TIDM68FF
RNS Number : 8033W
HBOS PLC
06 February 2012
Halifax House Price Index
National Index January 2012
All Houses, All Buyers Index (1983=100)
Annual Change -1.8% Quarterly Change Monthly Change
-0.9% +0.6%
Standardised Average Price (seasonally adjusted) GBP160,907
Commenting, Martin Ellis, housing economist, said:
"House prices in the three months to January were 0.9% lower
than in the previous three months. Despite the slight downward
movement in the underlying trend, prices increased by 0.6% in
January.
"Notwithstanding monthly fluctuations, the average UK house
price is very close to where it was eight months' ago, at around
GBP161,000. The continuing very low level of interest rates has
helped to support housing demand, resulting in little overall
movement in house prices since last spring. Low rates have
contributed to mortgage payments falling to their lowest level as a
proportion of disposable earnings for a new borrower for 14 years.
A recent improvement in employment trends may also have supported
demand.
"Prospects for house prices over the coming months will, to a
large extent, depend on events in the Eurozone and the
repercussions of developments there for the UK economy. If the UK
can avoid a prolonged recession, we expect broad stability in house
prices in 2012."
Key facts
-- House prices in the three months to January were 0.9% lower
than in the preceding three months. This was the fourth consecutive
month that this measure of the underlying trend has been slightly
negative.
-- On a monthly basis, house prices increased by 0.6% in
January. This was the second rise in the past six months and the
first since October.
-- Prices in the three months to January were 1.8% lower than in
the same period a year earlier. This measure of the annual rate has
edged lower in the last two months from -1.0% in November, but is
still comfortably above the recent low point of -4.2% in May
2011.
-- Overall, house prices have changed little in the past eight
months. The UK average price in January, at GBP160,907, was very
similar to that in May 2011 (GBP161,039).
-- A modest pick-up in housing activity. The industry-wide
number of mortgages approved to finance house purchase - a leading
indicator of completed house sales - held steady at close to 53,000
(after seasonal adjustment) for the third successive month in
December. Overall, approvals in the final three months of 2011 were
3% higher than in the previous quarter and 16% higher than in the
same period of 2010. (Source: Bank of England)
-- The recent improvement in employment trends may have
supported housing demand. The number of people in employment in the
three months to November was 18,000 higher than in the preceding
three months (June to August). This was the second consecutive
increase on this quarterly basis following falls since May. The
rate of increase in the claimant count of unemployment has also
slowed significantly in recent months. This measure of unemployment
increased by just less than 4,000 in 2011 Quarter 4 compared with
an average monthly rise of nearly 25,000 between April and August
2011.
-- Mortgage payments for a new borrower in the second half of
2011 were at their lowest as a proportion of disposable earnings
for 14 years. Typical mortgage payments for a new borrower - both
first-time buyers and homemovers - at the long-term average loan to
value ratio, stood at 27% of disposable earnings in the fourth
quarter of 2011. This was well below the average of 37% recorded
over the past 27 years. Mortgage payments have nearly halved as a
proportion of income in recent years from a peak of 48% in 2007
Quarter 3. Lower house prices and reduced mortgage rates have been
the main drivers behind the significant improvement in
affordability.
The Halifax House Price Index is prepared from information that
we believe is collated with care, but we do not make any statement
as to its accuracy or completeness. We reserve the right to vary
our methodology and to edit or discontinue/withdraw this, or any
other report. Any use of this report for an individual's own or
third party commercial purposes is done entirely at the risk of the
person making such use and solely the responsibility of the person
or persons making such reliance. (c) Bank of Scotland plc all
rights reserved 2012.
This information is provided by RNS
The company news service from the London Stock Exchange
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