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FRIDAY 4TH MARCH 2005
 UK HOUSE PRICES SHOW SLIP - HALIFAX

House prices fell by a seasonally adjusted 0.5% in February, partly offsetting the gains recorded in December and January, said Halifax today. Overall, prices have risen by 0.8% since July 2004.

The figures are in contrast to the latest data from the Nationwide which showed prices rose 0.5% in February.

The annual rate of house price inflation continues to ease, said Halifax, falling from 13.7% in January to 12.1% in February. This is the lowest annual rate since December 2001 (11.7%).

Estate agents appear to be seeing a stabilisation in activity. Halifax Estate Agents recorded the first upturn in sales agreed for six months in January: a development that was repeated in February. The latest RICS survey reported that the number of new buyer enquiries showed no significant change for a third successive month in January following a marked decline during much of the second half of 2004.

Mortgage payments for the average new buyer have risen from a 20 year low of 13% of the borrower's gross earnings in September 2003 to 20% now. The proportion is just above the 19% average for the past 20 years and remains well below the 34% peak in 1990.

Commenting, Martin Ellis, Chief Economist, said: "This continues the mixed pattern of monthly price rises and falls recorded since last summer and is consistent with a gradual slowdown in house price inflation."

"The labour market is strengthening further with the number of people in employment rising by nearly 300,000 over the past year. This ongoing development continues to provide a solid support for the housing market, helping to maintain its sound underlying health."


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