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| Version 1 | Version 2 |
|---|---|
| House prices unchanged in January | House prices unchanged in January |
| (20 minutes later) | |
| House prices were unchanged in January compared to the previous month, according to the Halifax bank. | House prices were unchanged in January compared to the previous month, according to the Halifax bank. |
| However, the country's biggest mortgage lender said that house prices were rising at an annual rate of 4.5%. | However, the country's biggest mortgage lender said that house prices were rising at an annual rate of 4.5%. |
| The gain in annual house price growth pushed the value of the average UK home to £197,244 - a rise of £7,628. | The gain in annual house price growth pushed the value of the average UK home to £197,244 - a rise of £7,628. |
| The bank said that there were continuing signs of weakness in housing market activity and that the market would be flat during the year. | The bank said that there were continuing signs of weakness in housing market activity and that the market would be flat during the year. |
| The figures are the latest to highlight a slowing in UK house price growth, after a decade of near record-breaking increases. | The figures are the latest to highlight a slowing in UK house price growth, after a decade of near record-breaking increases. |
| Slowing growth | Slowing growth |
| Problems in global financial markets, weakening consumer demand, higher interest rates and increases in petrol and food costs have all combined to rein in growth. | Problems in global financial markets, weakening consumer demand, higher interest rates and increases in petrol and food costs have all combined to rein in growth. |
| The Halifax said it expected the Bank of England to cut interest rates twice during 2008, which should prevent the economy slowing too sharply and support the housing market. | The Halifax said it expected the Bank of England to cut interest rates twice during 2008, which should prevent the economy slowing too sharply and support the housing market. |
| Martin Ellis, Halifax chief economist, said: "We expect sound economic fundamentals and lower interest rates to support house prices. Nationally, we predict that house prices will be flat in 2008." | Martin Ellis, Halifax chief economist, said: "We expect sound economic fundamentals and lower interest rates to support house prices. Nationally, we predict that house prices will be flat in 2008." |
| The Bank of England is due to meet later this week to discuss UK interest rates. Many analysts are predicting a cut of a quarter of a percentage point, to 5.25% from 5.5%. | The Bank of England is due to meet later this week to discuss UK interest rates. Many analysts are predicting a cut of a quarter of a percentage point, to 5.25% from 5.5%. |
| Quarterly fall | Quarterly fall |
| Despite the annual growth and prices remaining unchanged in January, the Halifax said there was evidence of a longer term slowdown. | Despite the annual growth and prices remaining unchanged in January, the Halifax said there was evidence of a longer term slowdown. |
| It said that prices fell by 1% in the three months to the end of January compared to the previous quarter. | It said that prices fell by 1% in the three months to the end of January compared to the previous quarter. |
| This was the third successive fall in prices on a three-month basis. | This was the third successive fall in prices on a three-month basis. |
| Many analysts look at the three month figure as a more accurate measure because they say it is less volatile and gives a better picture of long term trends. | Many analysts look at the three month figure as a more accurate measure because they say it is less volatile and gives a better picture of long term trends. |
| Annual house price inflation was 4.5%, down on the previous month's figure of 5.2%. | |
| Trend | Trend |
| This latest report follows warnings from other groups about the housing market. | This latest report follows warnings from other groups about the housing market. |
| Last week, rival mortgage lender Nationwide said prices fell by 0.1% during January. | Last week, rival mortgage lender Nationwide said prices fell by 0.1% during January. |
| In recent weeks the Royal Institution of Chartered Surveyors (Rics) reported that the cost of getting on to the housing market has risen by about 350% from its most accessible point in 1996. | In recent weeks the Royal Institution of Chartered Surveyors (Rics) reported that the cost of getting on to the housing market has risen by about 350% from its most accessible point in 1996. |
| The Financial Services Authority (FSA) also warned that a million homeowners could struggle to repay their home loans over the next 12 months. | The Financial Services Authority (FSA) also warned that a million homeowners could struggle to repay their home loans over the next 12 months. |