House prices continue to fall, figures show

10-Oct-2008

Property prices fell again last month, first-time buyers might be glad to hear.

According to figures from Halifax the decrease in house prices was 1.3 per cent, bringing the average price down to £172,108.

It points out that this is the smallest monthly fall for seven months, hinting that the market could be stabilising.

However, although the house price to earnings ratio is improving, the average mortgage rate paid by new borrowers has risen to 6.10 per cent, Halifax states.

It believes this week's interest rate cut by the Bank of England will help mortgage borrowers and the housing market.

The Royal Institution of Chartered Surveyors (Rics) also believes the reduction of the interest rate to 4.5 per cent will bring confidence.

It called the move a 'dramatic and appropriate' response to the current financial market but warned that more action could be necessary in the coming months.

Rics believes the base rate could fall to 3.5 per cent by the middle of 2009 and that house prices will continue to fall and borrowing costs will decrease.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Interest rate cut 'will support housing market'Stamp duty saving "a drop in the ocean" Good property 'sells close to asking price'

2012: May | Apr | Mar | Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar