The ODPM data for November 2004 is based on actual house prices rather than asking prices or mortgage approvals. It shows that the mix-adjusted average house price in the UK in November 2004 stood at £180,226 down from £180,444 in October.
Meanwhile the Halifax house price index showed that house prices rose by 1.1 per cent (seasonally adjusted) in December and, on a quarterly basis, by 0.1 per cent in quarter four 2004. It was the smallest quarterly gain since 2000 quarter two.
Halifax believe this points to continuing signs of a genuine slowdown in the housing market which is likely to reduce the pressure on the Bank Of England to raise interest rates again.
It said that base rates have peaked at 4.75 per cent and that rates will end the year at 4.25 per cent.
Martin Ellis, chief economist at the Halifax, said: “House prices rose by 1.1 per cent in December following successive monthly declines in October and November. Sound housing market fundamentals will continue to underpin the market in 2005, ensuring that the market remains healthy and that house prices fall only slightly.
“We expect a 2 per cent decline in prices nationally this year with the market subsequently characterised by modest price increases and a steady improvement in transactions beyond 2005.”
Russell Jervis, managing director of haart estate agents, expressed his surprise at the Halifax figures.
He said: “The Halifax figures for December bear little resemblance to the market at the end of last year. Many decided to take an early Christmas break from the housing market during December and wait until the New Year.
“This has been reflected in a surge in activity in the last week with many of our offices across the country reporting a significant increase in enquiry levels compared with last month.
“Having taken time out to see what happens to the market, our customers are now keen to get moving.”
The Woolwich consumer confidence index has shown confidence is at an all-time low but with signs that confidence among homeowners may be stabilising due to a fall of only 1 per cent last month, with 39 per cent now believing that their property will continue to increase in value.
Andy Gray, head of mortgages at Barclays and The Woolwich, said: “Last month we predicted that confidence would start to stabilise as we enter into the New Year, these latest figures suggest that this may be starting to happen.
“We expect confidence to remain low for the next month or so with the potential for a slight pick-up in Spring 2005 as the traditional house buying period starts up.”
SmartNewHomes’ New Homes Index has reported that the average price of a new home in the UK in December was £266,380. This is down 0.9 per cent from November and a fall of 5.3 per cent since last year.
