Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Tuesday, October 5, 1999 Published at 12:13 GMT 13:13 UK


Business: The Economy

UK house prices fall



UK house prices eased in September, according to a new report.

Property prices fell 0.1% in September, bringing the yearly rise to 8.8%, says the Halifax, the UK's biggest mortgage lender.

But Halifax described the easing as a "blip" and forecast that house prices would continue to rise for the rest of the year.

"What we are moving towards is a more sustainable growth rate, not at levels that would be of concern to people fearing a 1980s-style boom-bust cycle," Mr Martin Ellis, chief economist at the Halifax said.

"With relatively low interest rates, we are likely to see a modest rise in prices for the rest of the year," he added.

In May, June and July, house prices rose 2%. In the year to August, prices rose 9.4%, the fastest rate in ten years.

"In retrospect, it appears that the average 2% monthly house price rises over this period represented an essentially one-off adjustment in response to the sharp falls in interest rates last month," Halifax said.

The Bank of England meets this week to decide the future level of interest rates. Last month's 0.25% rise in UK interest rates to 5.25% was in part prompted by fears that the housing boom could lead to inflation.

While the Halifax figures may be welcomed by the Bank of England, it conflicts with last week's figures from the Nationwide Building Society.

The Nationwide Building Society said prices rose 1.3% in September, leaving them 11% higher year-on-year.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Economy Contents


Relevant Stories

03 Oct 99 | The Economy
Triple interest rate rise threat

30 Sep 99 | The Economy
Housing boom marches on

08 Sep 99 | The Economy
UK interest rate shock

02 Sep 99 | The Economy
House price rises hit 10-year high

02 Jul 99 | The Economy
House prices rise sharply





Internet Links


Halifax

Nationwide Building Society


The BBC is not responsible for the content of external internet sites.




In this section

Inquiry into energy provider loyalty

Brown considers IMF job

Chinese imports boost US trade gap

No longer Liffe as we know it

The growing threat of internet fraud

House passes US budget

Online share dealing triples

Rate fears as sales soar

Brown's bulging war-chest

Oil reaches nine-year high

UK unemployment falls again

Trade talks deadlocked

US inflation still subdued

Insolvent firms to get breathing space

Bank considered bigger rate rise

UK pay rising 'too fast'

Utilities face tough regulation

CBI's new chief named

US stocks hit highs after rate rise

US Fed raises rates

UK inflation creeps up

Row over the national shopping basket

Military airspace to be cut

TUC warns against following US

World growth accelerates

Union merger put in doubt

Japan's tentative economic recovery

EU fraud costs millions

CBI choice 'could wreck industrial relations'

WTO hails China deal

US business eyes Chinese market

Red tape task force

Websites and widgets

Guru predicts web surge

Malaysia's economy: The Sinatra Principle

Shell secures Iranian oil deal

Irish boom draws the Welsh

China deal to boost economy

US dream scenario continues

Japan's billion dollar spending spree