October saw house prices fall by 1.1% on average as the market continued to move towards a more historical growth trend, according to the latest figures from Halifax.
The lender’s latest monthly survey of prices suggests prices are falling at the fastest quarterly rate since the end of 2000, which is helping reduce the ratio of house prices to earnings. From a peak of 5.63x in July this year the multiple has slipped as mortgage payments as a percentage of earnings of new borrowers has dropped to 14% from a peak of 19%. These ratios are still well below the 34% figure recorded at the peak of the housing boom in 1990. Further evidence the housing market is “softening” comes from the Council of Mortgage Lenders and the Bank of England, Halifax adds....
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