Halifax Price Index Shows 12.4% Fall But Bricks & Mortar Still The Safest Bet

Musings of a London Property Finder

Regular Readers will know that we use the Land Registry Index when looking at house price trends because they are based on actual sold prices and are therefore more robust.  Also, we can look at prices regionally and borough by borough using the Land Registry Data.  The benefit of other indices, including that produced by the Halifax is that they are more immediate. 

The Halifax House Price Index (HPI) for September which was published today, showed a 12.4% fall in average house prices since last year.  To put this into context this national house price fall on the Halifax HPI takes prices to a similar level to January 2006.  However we know from analysis of the land registry data and from our knowledge of what is selling to less canny buyers, that prices in London for example rose 10% in 2006 and 13% in 2007.  A subsequent 12% drop would take prices back to price levels of late 2006, ie just wipe out gains made in 2007 – not a disaster except for first-time buyers with little equity who can’t afford their mortgage repayments.

Clearly we are comparing apples and pears, but gains or falls depend on location and although it is interesting to look at national house price data, it is of limited value for the householder.  Better to consider actual sold prices in your street.

On a more positive note, Chief Economist at the Halifax, Martin Ellis said,

“House prices declined by 1.3% in September. The overall price decrease in the three months to September was very similar to that in the previous quarter, indicating that the trend rate of decline may be beginning to stabilise. The ongoing pressures on householders’ income, combined with the reduction in the availability of mortgage finance, however, mean that market conditions will remain challenging.”

Still, with Armageddon definitely occurring in the financial markets and banks falling, bricks and mortar remains the safest bet.  let this London Property Finder do the groundwork for you.
http://www.hbosplc.com/economy/HousingResearch.asp

Technorati Tags: Halifax house price index, House Prices, London House Prices, London Property Finder, South East House Prices

Tags: Halifax house price index, House Prices, London House Prices, London Property Finder, South East House Prices