House prices in the three months to August were 0.3% lower than in the preceding three months, according to the latest Halifax House Price Index.
This was slightly worse than in July when there was a 0.1% fall in house prices on a three monthly basis.
House prices declined by 0.4% in August. This was the second successive monthly fall, with these two decreases largely cancelling out the rises recorded in May and June.
“Nationally, house prices continue to tread water, as measured by the underlying trend,” said Martin Ellis, Halifax’s housing economist.
“Overall, there has been little change in house prices so far this year with the UK average price in August at a very similar level to the end of 2011. A gradual upward trend in spending power, aided by lower inflation, should help to support housing demand in the coming months.
“Nonetheless, house prices are likely to remain flat over the remainder of 2012 and into next year.”
Little overall change in prices over the first eight months of 2012. The average UK house price in August 2012 was 0.2% higher than in December 2011. House prices nationally are at a very similar level to three years’ ago, at £160,256.
Prices in the three months to August were 0.9% lower than in the same period a year earlier. This measure of the annual rate has been between 0% and -1% throughout the last six months. The annual rate has improved compared with a year ago when prices were falling by 2.6% (August 2011).
Russell Quirk, director of low cost estate agents, eMoov.co.uk, said: “Who would have thought it? The Halifax figures, showing a 0.4% decline last month, contradict those of the Nationwide, which showed a 1.3% rise in August.
“The treading water cliche has been wheeled out once again, but in fairness to the Halifax that accurately sums up what the property market is doing: very little indeed.
“The paralysis of the property market could continue for quite some time, as both lender and consumer confidence are weak.
“It’s clutching at straws to think that marginally lower inflation will suddenly inject confidence into the market. There are countless points of weakness.”
He added: “The rest of 2012 looks set to be a non-event. Prices will be up one month, down the next due to low transaction levels but overall the picture will be flat. Until lenders start to lend at higher LTVs, and consumers get more confident about the future, the property market will remain stuck in first gear.”
