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| Halifax confirms house price fall | Halifax confirms house price fall |
| (20 minutes later) | |
| UK house prices saw an annual fall of 0.9% in April, says the UK's biggest mortgage lender. | UK house prices saw an annual fall of 0.9% in April, says the UK's biggest mortgage lender. |
| The Halifax also said that prices dropped by 1.3% in April compared with the previous month, pushing the price of the average home down to £189,027. | The Halifax also said that prices dropped by 1.3% in April compared with the previous month, pushing the price of the average home down to £189,027. |
| The lender said it now expected a "mid-single-digit" percentage decline in prices in 2008. | The lender said it now expected a "mid-single-digit" percentage decline in prices in 2008. |
| But it expects bigger falls in Wales and the West Midlands, with Scotland bucking the trend with a modest rise. | |
| Halifax's chief economist, Martin Ellis, said the decline in prices was driven by a squeeze on consumers' spending power and the rapid rise in house prices in the last few years. | Halifax's chief economist, Martin Ellis, said the decline in prices was driven by a squeeze on consumers' spending power and the rapid rise in house prices in the last few years. |
| The figures are the latest to show a slowdown in the housing market, following rival mortgage lender Nationwide's report of a 1% fall in year-on-year house prices in April. | The figures are the latest to show a slowdown in the housing market, following rival mortgage lender Nationwide's report of a 1% fall in year-on-year house prices in April. |
| Earlier in the week the Bank of England said that new mortgage approvals had fallen to their lowest level since records began in 1990. | Earlier in the week the Bank of England said that new mortgage approvals had fallen to their lowest level since records began in 1990. |
| Mortgage deals have continued to rise in price and availability has fallen, despite recent rises in interest rates. | Mortgage deals have continued to rise in price and availability has fallen, despite recent rises in interest rates. |
| Lenders are demanding higher deposits as they tighten their lending criteria. | Lenders are demanding higher deposits as they tighten their lending criteria. |
| Regional variations | |
| The Halifax said the number of mortgages approved to finance house purchases in the first quarter of 2008 was 41% lower than a year earlier. | |
| It said this was the first year-on-year fall in house prices since February 1996, but the picture would not be the same across the UK. | |
| It expects Scotland to see a "modest rise" in property prices in 2008, but areas such as Wales and the West Midlands to see bigger falls than the national average. | |
| The number of first-time buyers has fallen sharply in recent years | |
| But Mr Ellis added that a balanced view of the state of the market should take into account recent history. | |
| "Price falls should be viewed in the context of the substantial price rises over recent years," he said. | |
| "UK prices nearly doubled (190%) over the ten years to August 2007. A growing economy, high employment levels, low interest rates and a shortage of new homes underpin housing valuations." | |
| He expected the Bank of England to cut interest rates further in the coming months "as concrete evidence of an economic slowdown accumulates". |