Halifax House Price Index (2925C)

TIDM68FF

RNS Number : 2925C

HBOS PLC

04 March 2011

Halifax House Price Index

 
 National Index   February 2011 
 
 
                     All Houses, All Buyers Index (1983=100) 
   Annual Change     Quarterly Change   Monthly Change 
       -2.8%               -0.4%             -0.9% 
           Standardised Average Price (seasonally adjusted) GBP162,657

Commenting, Martin Ellis, housing economist, said:

"House prices, as measured by the underlying trend, continue to fall slightly with prices in the three months to February 0.4% lower than in the previous three months.

"There has, however, been little change in house prices over the first two months of 2011 as a whole. February's monthly decline of 0.9% offset January's 0.8% gain.

"Overall, we expect a modest 2% decrease in house prices in 2011. Uncertainty over the economic outlook is likely to weigh down on housing demand this year.

"Fewer properties have been coming onto the market in recent months. This trend, if sustained, should improve the balance between demand and supply and help to prevent a more significant fall in house prices."

Key facts

-- House prices in the three months to February were 0.4% lower than in the previous three months, showing acontinuing slight decline in prices. This measure of the underlying trend shows that the pace at which prices are falling remains significantly lower than the 5-6% quarterly declines recorded during the second half of 2008.

-- Prices in February were 2.8% lower than a year ago as measured by the average for the three months to February against the same period a year earlier. This is the biggest annual decline since October 2009.

-- The decline in properties coming onto the market continues. The latest RICS survey showed a reduction in new seller instructions for the fourth successive month in January. This trend, if sustained, should improve the balance between demand and supply and help to prevent a more significant fall in house prices.

-- House sales remain low.The number of mortgages approved to finance house purchase - a leading indicator of completed house sales - increased by 7% between December and January on a seasonally adjusted basis, according to Bank of England industry-wide figures. Despite this increase, approvals remain historically low with the total number in the three months to January being 4% lower than in the preceding three months.

The Halifax House Price Index is prepared from information that we believe is collated with care, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. (c) Bank of Scotland plc all rights reserved 2011.

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