House Prices Continue to Slide – Halifax April 2009 Report

The Halifax April 2009 report on the housing market has shown that prices continue to fall. The report set against mixed messages from the housing sector in recent times, including a nationwide report of falling prices, will come as a blow to many UK landlords.

The key difference between the two reports is that the Halifax think that prices are still falling at faster rates but the Nationwide believe prices are falling but the rate of decline is slowing.

The Halifax put the fall at 1.7% in April 2009 increasing the rate of annual decline to 17.7% and puts the UK average house price at £154,716. At the current rate of price fluctuation, average prices will fall below £150,000 in 10 weeks time.

The Halifax has the view that further falls are likely although there are some signs that things are becoming more stable.
"Rising unemployment, low consumer confidence and the reduced availability of credit are all expected to exert downward pressure on the housing market over the next few months," said their chief economist, Martin Ellis.

Recent Bank of England statistics showed 4% more mortgages approved in March 2009 indicating that housing activity is increasing which could be a more positive indicator for house prices.