Friday 7th March 2008
House prices fell last month, with the average property now costing £197,000 in the UK.
The total drop in Halifax's latest index came to 0.3 per cent, meaning that the annual rate of inflation has been brought down to 4.2 per cent.
However, far from presaging the beginnings of a severe slowdown for 2008, the chief economist at the mortgage provider claimed that the outlook remained steady.
"Whilst the housing market has slowed over the past six months, it is supported by sound economic fundamentals," Martin Ellis said.
"Interest rate cuts by the Bank of England are also helping to underpin house prices," he added.
Although it passed on a further base rate reduction yesterday, the Bank has nevertheless cut it by 0.5 per cent over the past five months.
Most analysts also expect further reductions later in the year, in order to give a boost to consumer spending through mortgages.
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Mortgages
While today’s decision by the Bank of England MPC was literally a no brainer it does not help the thousands of home owners who are struggling to make ends meet. As we read another report from the... 
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