House prices stable despite economic pressures

On a monthly basis, house prices fell by 0.9% in November. This continued the very mixed picture shown by the more volatile monthly figures. There has been an even split of monthly price rises and falls this year with five of each and one month of no change.

The average UK house price in November was marginally lower than at the end of last year. The average price in November was 0.7% lower than in December 2010 on a seasonally adjusted basis, at £161,731.

Annually, prices in November were 1.0% lower as measured by the average for the three months to November against the same period a year earlier. This continues the improvement experienced since May when prices were 4.2% lower and is the smallest annual fall since November 2010 (-0.7%).

Martin Ellis, housing economist, said: "Overall, house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances.

"The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little.

"We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little."

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