–September House Prices Down 0.5% m/m; Down 2.3% 3m y/y
–July to Sep House Prices Up 0.1% Vs April To June

LONDON (MNI) – UK house prices fell on the month in September but
posted a very small gain on a three monthly basis, according to the
Halifax house price survey.

House prices were down 0.5% on the month in September and down 2.3%
on the year, but up 0.1% in the three months through September. The data
show continuing modest yearly house price deflation, but Halifax’s
interpretation is that the market lacks direction, with prices bobbing
up and down month-by-month.

The data “continued the mixed monthly picture experienced so far
this year with four rises, four falls and one no change since January.
This mixed pattern is consistent with a market where prices are lacking
genuine direction,” Martin Ellis, Halifax housing economist, said.

Ellis said Halifax expected little change in house prices over the
remainder of 2011, with record low mortgage rates and the rise in
employment over the past 12 months supporting the market.

Bank of England data have shown mortgage approvals rising, hitting
a 32 month high in August.

The rival Nationwide house price survey has also shown a lack of
clear direction in monthly moves. It showed house prices nudged up 0.1%
in September, following a 0.6% fall in August.

–London newsroom: 44207 862 7491; email drobinson@marketnews.com