Housing decline is slowing

The recent decline in the housing market is slowing, according to figures released by the Halifax.

The Halifax house price index showed that prices fell by just 1.3% in September. This is the smallest monthly decline in the last seven months and brings average house prices close to the January 2006 level.

As well as the good news for first-time buyers, the house price index contained reasons for existing homeowners to celebrate. The average mortgage rate has fallen from 5.91% to 5.83%.

Simon Bierley, a partner at chartered surveyors George F White, is cautiously optimistic about the figures.

He said: “Although the housing market appeared to decline dramatically in a very short space of time, these recent figures are encouraging and suggest that it may once again be taking a turn. This is, however, dependent on the condition of the wider economic outlook.”

It was also announced that the number of mortgages approved for first-time buyers rose in September.

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