UK property prices decline

By Andrew Batt:

Average house prices in the U.K. dipped by 1.2 percent in the three months to October according to the latest Halifax House Price Index.

Commenting on the decline Halifax Economist Martin Ellis said: "Signs of a modest deterioration in the trend in house prices continued in October. 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."

October’s drop was the fifth successive decline in this measure of the underlying trend and compared with a 0.5 percent fall in September. Average prices in the three months to October were 1.7 percent lower than in the same period a year earlier. This is very similar to the annual rate recorded a year ago: down 1.8 percent in October 2011.

October also saw a continuation of a modest rise in mortgage approvals. The industry-wide number of mortgages approved to finance house purchase - a leading indicator of completed house sales - increased for the third successive month in September.

Approvals increased by 4 percent to 50,000 in September, but were still 2 percent lower than in September 2011 according to seasonally-adjusted figures from the Bank of England.

Properties from the U.K., and epsecially London, have been selling extremely well throughout Southeast Asia during 2012.