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| Version 1 | Version 2 |
|---|---|
| Property market continues to cool | Property market continues to cool |
| (30 minutes later) | |
| The UK property market is still cooling despite a slight rise in prices in December, government figures reveal. | The UK property market is still cooling despite a slight rise in prices in December, government figures reveal. |
| Prices rose 0.4% in December compared with the previous month, according to the Department for Communities and Local Government (DCLG). | Prices rose 0.4% in December compared with the previous month, according to the Department for Communities and Local Government (DCLG). |
| But the annual rate of house price inflation was 9.1%, down from 9.7% in November and the second consecutive monthly fall. | But the annual rate of house price inflation was 9.1%, down from 9.7% in November and the second consecutive monthly fall. |
| The DCLG said the average price of a home in the UK was £219,591. | The DCLG said the average price of a home in the UK was £219,591. |
| The figures are the latest to suggest a cooling in the housing market, with the leading mortgage lenders having also predicted the market would be flat during 2008. | The figures are the latest to suggest a cooling in the housing market, with the leading mortgage lenders having also predicted the market would be flat during 2008. |
| The DCLG said the UK annual house price inflation rate for the last three months of 2007, considered a more reliable indicator of the market, fell to 10% from 10.5%. | The DCLG said the UK annual house price inflation rate for the last three months of 2007, considered a more reliable indicator of the market, fell to 10% from 10.5%. |
| Bungalow prices drop | Bungalow prices drop |
| Prices in December were lower than they were in September and October, the statistics show. | Prices in December were lower than they were in September and October, the statistics show. |
| The rise between November and December was the result of increased prices of detached houses (up 1%), terraced houses (up 0.6%), flats (up 0.5%) and semi-detached homes (up 0.2%). | The rise between November and December was the result of increased prices of detached houses (up 1%), terraced houses (up 0.6%), flats (up 0.5%) and semi-detached homes (up 0.2%). |
| But this was offset by a fall in the price of bungalows by 2.3%. | But this was offset by a fall in the price of bungalows by 2.3%. |
| At its December meeting the Bank of England cut interest rates from 5.75% to 5.5%. | At its December meeting the Bank of England cut interest rates from 5.75% to 5.5%. |
| The Bank's Monetary Policy Committee decided to drop the rate by a further 0.25% last week, with many economists expecting further cuts during the year. | The Bank's Monetary Policy Committee decided to drop the rate by a further 0.25% last week, with many economists expecting further cuts during the year. |
| Price 'stall' in 2008 | Price 'stall' in 2008 |
| The DCLG statistics lag behind other house price indexes as they are based on sale completions, rather than mortgage approvals. | |
| House prices have stalled, according to leading mortgage lenders | House prices have stalled, according to leading mortgage lenders |
| January figures from the Halifax bank and the Nationwide Building Society signalled further falls in annual house price inflation. | January figures from the Halifax bank and the Nationwide Building Society signalled further falls in annual house price inflation. |
| The Halifax, the UK's biggest mortgage lender, said annual house price inflation was 4.5% in January, down from the previous month's figure of 5.2%. | The Halifax, the UK's biggest mortgage lender, said annual house price inflation was 4.5% in January, down from the previous month's figure of 5.2%. |
| Nationwide said the annual rate of price growth dropped to 4.2% in January, which was the lowest rate since December 2005. | Nationwide said the annual rate of price growth dropped to 4.2% in January, which was the lowest rate since December 2005. |
| A tighter credit market and weakening consumer demand as well as rising fuel and food bills have all been highlighted as reasons for slowing growth. | A tighter credit market and weakening consumer demand as well as rising fuel and food bills have all been highlighted as reasons for slowing growth. |
| Regional figures | |
| The highest annual rate of inflation, when the figures were broken down regionally, was the 13.5% in London. The lowest was 4% in the West Midlands. | |
| In Northern Ireland, annual house price inflation fell from 17.4% in November to 12% in December. In contrast, Wales saw an increase from 6% in November to 6.1% the following month. | |
| The UK house price inflation rate fell more for people who were selling a property to buy another (9.7% in November to 9% in December) than for first time buyers (9.8% to 9.5%). | |
| The average price paid by first time buyers across the whole of the UK was £166,734 in December, compared with £245,522 paid by former owner occupiers. |