British house prices fall further in September: survey

6th October 2011, Comments 0 comments

British house prices slid 0.5 percent in September, after dropping 1.1 percent the previous month, data from a top home-loans provider showed on Thursday.

"Greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand," said Halifax housing economist Martin Ellis in a statement.

"Despite these pressures, low interest rates and a rise in employment over the past year, have been supporting the market, resulting in broad stability in both prices and activity. We expect little change over the remainder of this year."

Later on Thursday, the Bank of England is widely expected to keep its main lending rate at a record low level of 0.50 percent at the conclusion of its monthly monetary policy meeting.

However, the central bank may signal a return to exceptional stimulus measures as Britain's economy manages only anaemic recovery, analysts said.

Halifax, part of state-controlled Lloyds Banking Group (LBG), added that the average house price in Britain stood at £161,132 (186,522 euros, $248,854) in September.

© 2011 AFP

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