UK property market is subdued but stable

House prices in the UK fell by 0.5 per cent in the three months to September while the number of home sales remains stable. That’s the conclusion of research by Halifax who found that house prices have fallen in each of the last three months, cancelling out the rises seen in May and June.

The average house price in the UK in September 2012 was 0.3 per cent lower than in December 2011. Keep reading to find out more about the current state of the UK property market.

House prices fall by 1.2 per cent in the last year

According to the Halifax, the average UK house price in September 2012 was £159,486. Prices in the three months to September were 1.2 per cent lower than in the same period a year earlier.

The number of house sales has been very stable in recent months, at between 75,000 and 77,000 per month between May and August. Sales in the three months to August were 3 per cent higher than in the same period last year.

Martin Ellis, housing economist, said: "Overall, there has been very little change in the average UK house price so far this year. There is, nonetheless, evidence of a slight deterioration in the trend recently with prices in the three months to September 0.5 per cent lower than in the previous quarter. The average price fell by 0.4 per cent in September; the third successive monthly decline.

"The generally weak economic climate remains a significant constraint on housing demand. The relatively low level of mortgage payments in relation to income, however, continues to provide support for house prices. We expect house prices to be broadly unchanged over the rest of this year and into 2013."

 It’s worrying to see that prices of homes have now fallen in each of the last three months. Until access to mortgage finance improves I don’t expect to see a huge recovery in property values.”

Author Nick Marr