Halifax reports December rise in house prices

House prices rose in December, despite forecasts of continuing falls in the property market.

Housing industry analysts expected a 0.5% fall in house prices in December, which followed three successive monthly falls. However, the report from the Halifax showed that house prices rose by 1.3%.

Analysts don’t believe the findings mean an end to the slowdown in the property market, although the report has led many to revise predictions of the extent to which prices could fall.

Michael Saunders, economist for Citigroup, said: “With housing demand weakening sharply, we continue to expect house prices to fall outright in 2008, contributing to a further marked slowdown in consumer spending.”

Alan Clarke, economist at BNP Paribas, agreed, describing the Halifax figures as “a blip in an otherwise downward trend.”

The Halifax is Britain’s biggest mortgage lender. Their report contrasts others which have shown continuing falls in mortgage approvals and house prices.

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