House prices fall in January
Ahead of the Bank of England's latest rate setting decision, a new survey on the UK housing market has shown that prices fell in January for the first time in eight months.
Halifax's house price index showed prices fell by 0.4% in January, the first monthly decline since May 2005. Overall prices have risen by 1.6% over the last three months.
The building society added that a mixed pattern of monthly price rises and falls is a typical feature of a slow housing market. There were three monthly falls in 2005.
(Article continues below)Advertisement
On an annual basis, at 5.1% house price inflation is unchanged from last month and remains significantly below the 13.7% annual growth rate recorded in January 2005.
Halifax said the market is expected to be flat in 2006 with modest nominal house price growth and no change in real terms. "UK house prices are forecast to rise by 3% in 2006, broadly in line with the predicted rise in retail price inflation," added the group.
Chief economist Martin Ellis said, "House prices fell slightly in January for the first time since last May with a 0.4% decline. Despite this fall, prices have increased by 1.6% over the past three months as the market has strengthened.
