House price decline could be stabilising, says economist

The trend rate of decline for house prices could be starting to stabilise, it was suggested today.

Chief economist Martin Ellis commented on the most recent Halifax house price index, published by HBOS, which found that prices decreased by 1.3 per cent in September.

However, the overall decline in the three months to September was similar to that of the previous quarter.

Although September's house price change was the smallest monthly fall for seven months, Mr Ellis noted that alongside ongoing financial pressures, the market will "remain challenging".

The average price of a house in the UK now stands at £172,108, according to HBOS.

September's house price index follows this week's decision from the Bank of England, which saw the monetary policy committee (MPC) announce a 0.5 per cent cut to the base rate of interest.

The MPC announced their decision ahead of the scheduled time, having spoken with the Federal Reserve and the European Central Bank.