House prices rise for second month, erasing previous losses – Halifax

House prices have increased for a second month, up 0.2% after July's 0.7% rise, with activity largely 'static'.

FTSE 350

Prev Close:

More FTSE charts & prices

by Chris Marshall on Sep 08, 2010 at 09:06

Follow @cmarshallCW

House prices rise for second month, erasing previous losses – Halifax

House prices have increased for a second month, according to the Halifax.

While the price rise was less pronounced in August at 0.2% compared with July’s 0.7% increase, it reverses much of the decline the bank had reported in previous months.

Halifax’s report on rising prices – which suggests that house prices will remain static overall in 2010 – comes in contrast to other house price indices showing that prices are declining. Nationwide reported a 0.9% drop in August, following July’s 0.5% dip.

Martin Ellis, Halifax housing economist, said that the improved economy, strengthening labour market and low interest rates are all supporting housing demand. Other indices and commentators point to an imbalance in supply and demand that will push prices lower.

Ellis said: ‘Prices are now at a very similar level to that at the end of last year. Activity has also been largely static since the start of the year. These developments suggest that the market is broadly stable with house price inflation having cooled since last year when supply shortages helped to push up prices. ‘

Email a friend

Email me when someone comments on this article Print

6 comments so far. Why not have your say?

Asking Halifax and Nationwide how much house prices are going for is similar to asking Arthur Daley how much his supply of old record players are going for.

report this

There's a certain house style in effect when journalists talk about house prices:

When there are increases, previous losses are "reversed" or, better still, "erased". Or, even more impressively, as the BBC has put it today, there are signs of "stabilisation".

But when there are losses, we discover that "house price inflation is easing" or there is a "slowdown in house price growth". These are quotes from the Nationwide and Halifax commentary for June declines respectively.

To portray this singular "ongoing infinite house price inflation = good" mentality forever and ever negates the persective of the entire population.

In particular it ignores first time buyers who do not deserve to have to pay an inflated price for an illiquid asset so their elders can retain their ill-gotten "wealth".

It is Orwellian Newspeak and it is offensive to those of us who can see through the psychological propaganda!

report this

I agree entirely with Truth Searcher and Anonymous 1. Does anyone actually believe the claptrap from Halifax etc about a "0.7" increase and similar? It is all quite meaningless. In my experience the price of housing is going down as first time buyers are unable to pay what is being asked.

report this

Does anyone other than those with vested interests belive this ?

Maybe in London there are areas that reflect the figures but for the rest of the country I doubt it.

report this

Too little, too late I'm afraid. House price inflation should have been address 25 years ago but it was ignored so that those in that generation could rob from the ones the followed. A 0.7% rise or fall is irrelevant, house prices need to fall by 50% in real terms over the next decade and to have responsible government to stop housing bubbles.

report this

Michael Brooks

Sep 08, 2010 at 19:08

It is all nonsense. First-timers can`t afford the deposit, and many who have bust a gut to buy their first home will find it a short-lived experience as interest rates rise over the next two years.

report this

Please sign in here or register here to comment. It is free to register and only takes a minute or two.