By Max Clarke

The November 2010 Halifax Housing Report was published today; showing mean UK house prices decline by just 0.1%, with a total annual drop of 0.7%.

Though declining, house prices are currently 6.5% higher than the April 2009 low.

Martin Ellis, housing economist, comments:

"Prices fell by only 0.1% in November, and in the three months to November were 2.1% lower than in the preceding three months. The rate of decline in prices on the three month-on-three month measure has picked up over the past few months, but it remains well below the declines of 5-6% in the second half of 2008. The highly mixed picture of monthly house price rises and falls recorded this year continued. Such a varied monthly pattern is consistent with a relatively flat underlying trend for house prices.

“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."

The complete report is now available.