The latest figures from the Halifax have revealed that house prices fell again in November.
UK house prices fell again during November, the latest statistics from the Halifax have revealed.
Prices were down 2.6 percent compared with the previous month while there was an annual change of 14.9 percent. This left the average price of a house at £163,605 - a level not seen since July 2005.
A variety of factors were blamed by the Halifax for the continuing gloom in the market. House prices are still high in relation to people's earnings, while higher household costs have meant people have less to spend. Additionally, the banking crisis has led to a lack of available mortgages.
But Halifax chief economist Martin Ellis sounded an optimistic note: "Lower house prices, however, mean that a key housing affordability measure - the house price to earnings ratio - is at its most favourable for over five years at 4.56. There are also signs that the pressures on incomes may be beginning to ease."
He put this down to the fact that retail inflation has started to drop, along with energy costs, while rises in food prices have slowed.
The market could be further buoyed later today when the Bank of England's Monetary Policy Committee announces whether there is to be a cut in interest rates. If there is, it could make mortgage more affordable for buyers.
