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06 Dec 07 - House Market "Will Survive Turmoil"
The UK housing market will ride out the current turmoil
despite new figures showing prices dipped for the third
month in a row in November, Halifax has said. Britain's
biggest mortgage lender said it is the first time prices
have fallen for three consecutive months since early 1995,
while the 1.1% decrease was the biggest monthly drop recorded
since last December.
The data means annual house price inflation is now down
to 6.3%, its lowest level since March last year, as the
market responds to higher interest rates and stretched affordability.
Martin Ellis, Halifax chief economist, said: "The
housing market has slowed in recent months as the increase
in interest rates between July 2006 and July 2007 has taken
effect. "Higher mortgage repayments and falling real
earnings have put pressure on households' income, resulting
in a slowdown in both house price growth and activity."
But he added: "The UK economy is in sound shape. Strong
market fundamentals, a structural housing supply shortage
and pent-up demand from a large number of potential first-time
buyers will support house prices, preventing a sustained
and significant fall." Source: Halifax
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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