6 Mar

'Dip' in February prices

'Dip' in February prices

Property prices dipped in February, but the market is beginning to stabilise, according to figures released by Halifax on its House Price Index.

House prices dropped by 0.3 per cent during the month, while the average home was likely to set buyers back about £196,649 on average, the bank stated.

Due to "sound fundamentals" the market may well stay flat in the coming year, it added, with favourable factors including lower interest rates.

Chief UK & European economist at Global Insight Howard Archer stated that there are still pressures being felt on the housing industry, such as "tighter lending practices".

"Overall, the data suggest that house prices are continuing to cool ... but they are not plunging through the floor," he remarked.

The Bank of England will cut the base rate of interest twice in the remainder of 2008, Halifax added.

UK house price growth is the sixth-biggest on the European stage, a report from the Royal Institution of Chartered Surveyors has stated.ADNFCR-1222-ID-18498473-ADNFCR

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