The recent Halifax House Price Index for August shows little change in the house prices in the UK – a continuing pattern over the first eight months of this year.

Halifax House Price Index

The recent Halifax House Price Index for August shows little change in the house prices in the UK – a continuing pattern over the first eight months of this year.

Headline figures show that in August the monthly change was down by 0.4% – the second consecutive monthly decrease.

Further key facts are:

  • Average house prices are £160,256.
  • This represents a fall of 0.3% in the three months to August compared to the previous three months
  • The two falls in average prices in July and August virtually cancels the rises in May and June
  • Over the Year to August 2012, prices were 0.9% lower and only 0.2% higher than in December 2011.
  • Nationally the average house price is very similar to 3 years ago.

Commenting, Martin Ellis, housing economist, said:
“Nationally, house prices continue to tread water, as measured by the underlying trend. Prices in the three months to August were fractionally lower (-0.3%) compared with the previous three months. House prices fell by 0.4% in August with the declines in the past two months largely offsetting the gains in the preceding two months.

“Overall, there has been little change in house prices so far this year with the UK average price in August at a very similar level to the end of 2011. A gradual upward trend in spending power, aided by lower inflation, should help to support housing demand in the coming months. Nonetheless, house prices are likely to remain flat over the remainder of 2012 and into next year.”

The industry-wide number of mortgages approved to finance house purchase – a leading indicator of completed house sales – picked up in July with a 7% increase following a 13% decline the month before. Overall, approvals in the three months to July were marginally lower (-2%) than in the same three months last year. (Source: Bank of England, seasonally-adjusted figures).