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UK house prices take a knock

Nov 06 2008 11:43

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London - House prices in Britain slumped by 13.7% in October compared with the figure for the same month in 2007, the biggest drop on record according to a survey by home loans provider Halifax published on Thursday.

Halifax, part of British banking group HBOS, said it was the sharpest 12-month drop since the series began 25 years ago.

Prices sank by 2.2% in October from September, it added.

The average cost of a property in Britain fell to £168 176 in October, almost matching the level of three years ago.

"Housing market conditions remain challenging in the face of the significant pressures on householders' incomes and the reduction in the availability of mortgage finance since last summer," said Halifax chief economist Martin Ellis.

"But housing affordability is improving significantly. The house price to average earnings ratio has fallen below 5.0 for the first time for four and a half years. We expect a further improvement in the ratio over the coming months."

- AFP

 
 
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