House prices in the United Kingdom fell again in November by 0.1 per cent, according to lender Halifax.
The average price of a UK property is about 0.7 per cent cheaper than the same time last year, at £164,708.
The company cited slow demand and a larger amount of properties on the market, but also reasoned that a reluctance to sell from homeowners could help stop the fall in prices. However, the drop is relatively small compared to some falls in recent years. For instance, in the second half of 2008, house prices suffered a 5 to 6 per cent drop, and these sorts of falls are unlikely at the moment.
Martin Ellis, housing economist at Halifax said: "Higher numbers of properties for sale, combined with reduced demand, have caused the recent decrease in prices. There are, however, some tentative signs that homeowners are becoming more reluctant to put their properties on the market which, if continued, will help to relieve the current downward pressure on prices. Interest rates are likely to remain very low for an extended period, which will support the improved mortgage affordability position for homeowners. As a result, we do not expect to see a significant fall in house prices."