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| House prices 'fell 1.7% in July' | House prices 'fell 1.7% in July' |
| (20 minutes later) | |
| The house price slump continued in July according to the latest monthly report from the Halifax. | The house price slump continued in July according to the latest monthly report from the Halifax. |
| The lender said prices fell another 1.7% last month, taking the annual rate of decline down from 6.1% to 8.8%. | The lender said prices fell another 1.7% last month, taking the annual rate of decline down from 6.1% to 8.8%. |
| The Halifax calculates that the average house in the UK is now worth £177,351, back to the value seen in June 2006. | The Halifax calculates that the average house in the UK is now worth £177,351, back to the value seen in June 2006. |
| The bank said demand from home buyers had been "significantly curbed" by the lack of mortgage funds, high prices and the squeeze on household finances. | The bank said demand from home buyers had been "significantly curbed" by the lack of mortgage funds, high prices and the squeeze on household finances. |
| "Pressure on householders' income, together with a very significant reduction in mortgage finance due to the global financial markets crisis, is constraining potential house buyers' ability to enter the market," said the Halifax's economist Suren Thiru. | "Pressure on householders' income, together with a very significant reduction in mortgage finance due to the global financial markets crisis, is constraining potential house buyers' ability to enter the market," said the Halifax's economist Suren Thiru. |
| "This is resulting in both lower prices and activity levels," he added. | "This is resulting in both lower prices and activity levels," he added. |
| The Halifax's survey chimes with that of rival mortgage lender Nationwide, which recently calculated that UK property prices had fallen by 8.1% in the year to July. | The Halifax's survey chimes with that of rival mortgage lender Nationwide, which recently calculated that UK property prices had fallen by 8.1% in the year to July. |
| Falling fast | Falling fast |
| In June, the Halifax forecast that house prices would probably fall by about 9% over the course of this year. | |
| However, figures from the Halifax indicate that price falls have already exceeded that, falling by 10% in the first seven months of the year alone. | |
| The fall in the past 12 months was less than that only because prices rose in August and December last year. | |
| With mortgage approvals already down by 69% in the past 12 months, activity in the property market looks likely to fall even further. | With mortgage approvals already down by 69% in the past 12 months, activity in the property market looks likely to fall even further. |
| Many commentators suggest prices could easily fall by about 20% in the course of this year and next. | Many commentators suggest prices could easily fall by about 20% in the course of this year and next. |
| The credit ratings agency Standard & Poor's (S&P) suggested recently that a fall of this magnitude might push 1.7 million households into negative equity. | The credit ratings agency Standard & Poor's (S&P) suggested recently that a fall of this magnitude might push 1.7 million households into negative equity. |
| Negative equity describes a situation where the size of borrower's mortgage debt exceeds the value of their property. | Negative equity describes a situation where the size of borrower's mortgage debt exceeds the value of their property. |