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| UK house prices drop for fourth month in a row | UK house prices drop for fourth month in a row |
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| House prices fell for the fourth month running in October, dropping by 0.7% over the month, according to the latest figures from mortgage lender Halifax. | House prices fell for the fourth month running in October, dropping by 0.7% over the month, according to the latest figures from mortgage lender Halifax. |
| The bank's latest house price index put the average cost of a home in the UK at £158,426, down £4,500 on the price in October 2011 and £41,000 lower than the peak of £199,612 in August 2007. | The bank's latest house price index put the average cost of a home in the UK at £158,426, down £4,500 on the price in October 2011 and £41,000 lower than the peak of £199,612 in August 2007. |
| According to the index, which calculates annual price changes using the average of three months' figures, values have fallen by 1.7% over the past 12 months – the highest annual change recorded since February. | According to the index, which calculates annual price changes using the average of three months' figures, values have fallen by 1.7% over the past 12 months – the highest annual change recorded since February. |
| The three-month figures, which are generally a better indication of price trends than single monthly figures, showed a 1.2% fall. This is substantially higher than the 0.5% figure recorded in September. | The three-month figures, which are generally a better indication of price trends than single monthly figures, showed a 1.2% fall. This is substantially higher than the 0.5% figure recorded in September. |
| Halifax's chief economist, Martin Ellis, said the figures were "signs of a modest deterioration in the trend in house prices". | Halifax's chief economist, Martin Ellis, said the figures were "signs of a modest deterioration in the trend in house prices". |
| He added: "The weak economic background has been a key factor dampening housing demand this year. Recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months." | He added: "The weak economic background has been a key factor dampening housing demand this year. Recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months." |
| The short-term figures, which are based on mortgages approved by the bank, contradict the most recent index from rival lender Nationwide. It reported a 0.6% increase in October and rise of 0.5% over three months. | The short-term figures, which are based on mortgages approved by the bank, contradict the most recent index from rival lender Nationwide. It reported a 0.6% increase in October and rise of 0.5% over three months. |
| Mortgage activity remains low by historical standards, despite government efforts to stimulate the market through the Funding for Lending Scheme. The most recent figures from the Bank of England showed 50,024 house purchase loans were approved in September, compared to a long-term average of more than 80,000 a month. | Mortgage activity remains low by historical standards, despite government efforts to stimulate the market through the Funding for Lending Scheme. The most recent figures from the Bank of England showed 50,024 house purchase loans were approved in September, compared to a long-term average of more than 80,000 a month. |
| Howard Archer, chief UK economist for IHS Global Insight, said: "The further, and increased, drop in house prices in October reported by the Halifax highlights the fact that downside risks persist to the house price outlook and they could well drift lower over the winter months. | Howard Archer, chief UK economist for IHS Global Insight, said: "The further, and increased, drop in house prices in October reported by the Halifax highlights the fact that downside risks persist to the house price outlook and they could well drift lower over the winter months. |
| "Certainly, any significant turnaround in house prices still looks some way off despite the economy seeing a better-than-expected rebound in GDP growth in the third quarter." | "Certainly, any significant turnaround in house prices still looks some way off despite the economy seeing a better-than-expected rebound in GDP growth in the third quarter." |
| Separate figures from the National Association of Estate Agents (NAEA) underline how much the housing market has seized up since the recession took hold. | Separate figures from the National Association of Estate Agents (NAEA) underline how much the housing market has seized up since the recession took hold. |
| The number of properties for sale at each branch average was 62 in September, compared with an average of 100 in December 2008. This is despite the fact that it appears to be a seller's market, with agents reporting an average of 275 house hunters on their books. | The number of properties for sale at each branch average was 62 in September, compared with an average of 100 in December 2008. This is despite the fact that it appears to be a seller's market, with agents reporting an average of 275 house hunters on their books. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| HSBC | HSBC |
| Nationwide | Nationwide |
| Provided by London & Country for the Guardian |