04 February 2011

House Prices Rise By 0.8% From December

The Halifax House Price Index released this week found that the price of the average home in Britain rose to £164,173 last month. Although this is positive news, Halifax have warned that the 2011 house market is likely to be characterized by consumer caution as the double edged sword of government spending cuts and increasing tax rates will undoubtedly wound consumer confidence.

The prospects of the housing market are inevitably going to reflect the state of the economy at large. The difficult Christmas period is now behind us and there may be a little sunshine just around the corner. Martin Ellis, a Halifax housing economist made a statement that advised that ‘the recent downward trend in prices is causing homeowners to be more reluctant to put their properties on the market. This development should help to relieve downward pressures on prices as long as it is sustained’.

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