13 Jan

First-time buyers to benefit from house price drop in December

First-time buyers to benefit from house price drop in December

Estate agents could be busy this month after a report revealed that houses for sale in the UK dropped in price in December 2010.

According to the Halifax House Price Index, costs fell by 1.3 per cent from November to December, which will come as good news to first-time buyers.

It also reported that prices declined by 0.9 per cent over the quarter, taking the average cost of a property for sale in Britain to £162,435.

Martin Ellis, housing economist at the financier, said: "Looking forward, we expect limited movement in house prices during 2011 but with the risks on the downside. Interest rates are likely to remain very low for some time."

He added that this will support those entering the property market.

The report also found that prices for houses for sale had fallen by 3.4 per cent year-on-year from December 2009.

Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors, predicted this trend in falling house prices will "persist in the early months of 2011".

However, he noted that by spring, this fall will ease off.ADNFCR-1222-ID-800340145-ADNFCR

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