68FF Hbos 5.75% Nts

TIDM68FF

RNS Number : 1272G

HBOS PLC

09 May 2011

Halifax House Price Index

 
 National Index   April 2011 
 
 
                     All Houses, All Buyers Index (1983=100) 
   Annual Change     Quarterly Change   Monthly Change 
       -3.7%               -1.2%             -1.4% 
           Standardised Average Price (seasonally adjusted) GBP160,395 
 
 

Commenting, Martin Ellis, housing economist, said:

"The latest figures show that the underlying trend in house prices continues to be one of modest decline. Prices in the three months to April were 1.2% lower than in the previous three months. There was a 1.4% fall in prices in April following no change in March.

"Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices. Signs of a modest tightening in housing market conditions, a relatively low burden of servicing mortgage debt and an increase in the number of people in employment are all likely to be providing support for house prices, curbing the pace of decline. There are signs that house sales are stabilising albeit at a level lower than the historical average."

Key facts

-- House prices in the three months to April were 1.2% lower than in the previous three months. This continues the modest decline in prices recorded since the middle of last year on this measure of the underlying trend.

-- The average UK house price in April was 1.5% lower than in December 2010 on a seasonally adjusted basis.The current average house price of GBP160,395 is 4% above its April 2009 low, but remains 20% below its August 2007 peak.

-- Prices in April were 3.7% lower than a year ago as measured by the average for the three months to March against the same period a year earlier. This is the biggest annual decline since October 2009 (-4.7%).

-- Modest tightening in housing market conditions. The ratio of house sales to the stock of unsold properties on surveyors' books - according to the RICS monthly survey - is a measure of market conditions that has historically proved to be a good predictor of short-term house price movements. This ratio increased slightly in March for the second consecutive month, suggesting a modest tightening in market conditions. Moreover, the ratio remains higher than the levels recorded during the second half of 2008 and early 2009 when house prices fell sharply. A lower level of properties available for sale largely explains why current market conditions are tighter than in this period. (Source: RICS monthly survey, March 2011.)

-- The low interest rate environment has reduced the burden of servicing mortgage debt. Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid 2007 to 29% in the first quarter of 2011. This key measure of affordability is at a better level than the long-term average over the past 25 years (37%) and is an important factor supporting housing demand.

-- A recent increase in employment, particularly those in full-time jobs, may have been an important factor supporting the market. The number of people in employment increased by 143,000 in the three months to February compared with the previous three months, according to the latest figures from the ONS. This rise was almost entirely due to a 140,000 increase in the number in full-time employment.

-- House sales show further signs of stabilising. The number of mortgages approved to finance house purchase - a leading indicator of completed house sales - increased by 2% between February and March on a seasonally adjusted basis, according to Bank of England industry-wide figures. Approvals in 2011 Quarter 1 were also 2% higher than in 2010 Quarter 4.

The Halifax House Price Index is prepared from information that we believe is collated with care, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. (c) Bank of Scotland plc all rights reserved 2011.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLLFSVESIRIIL

Hbos 5.75% Nts (LSE:68FF)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

Hbos 5.75% Nts (LSE:68FF)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024