TIDM68FF

RNS Number : 7562A

HBOS PLC

04 April 2012

Halifax House Price Index

 
 National Index   March 2012 
 
 
                       All Houses, All Buyers Index (1983=100) 
  Annual Change -0.6%    Quarterly Change   Monthly Change 
                               -0.1%         +2.2 % 
             Standardised Average Price (seasonally adjusted) GBP163,803

Commenting, Martin Ellis, housing economist, said:

"House prices in the first quarter of 2012 were little changed compared with the final quarter of 2011, showing a decline of just 0.1%. This was the same as the slight fall recorded between the third and fourth quarters of 2011. The underlying trend therefore indicates broad stability in UK house prices. The more volatile monthly figures continue to fluctuate as a result of the historically low level of sales volumes, increasing by 2.2% in March following February's 0.4% fall.

"Efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices.

"We continue to expect little overall movement in prices this year provided that the UK economy does not suffer a pronounced weakening."

Key facts

-- House prices in the three months to March were 0.1% lower than in the previous three months. This was the same as the decline in prices on this measure of the underlying trend in December 2011 (-0.1%).

-- On a monthly basis, house prices increased by 2.2% in March. This followed February's 0.4% fall as prices continue to fluctuate month-to-month as transactions levels remain historically low.

-- Prices in the first three months of 2012 were 0.6% lower than in the same period last year. This was the smallest fall in prices on this measure of the annual rate since October 2010 (+1.2%).

-- The average UK house price is at the same level as in July 2011. The UK average price in March 2012, at GBP163,803, was almost identical to that in July 2011 (GBP163,765).

-- Signs of a pick-up in house sales.The number of completed house sales has risen to its highest levels since late 2009. The number of sales in January and February was a seasonally adjusted 81,000 in both months. This was 14% higher than in the same period last year. (Source: HMRC)

-- Housing market conditions have tightened modestly in recent months. Market conditions, as measured by the ratio of house sales to the stock of unsold properties - reported by the RICS's monthly survey - have tightened slightly in recent months, driven by the increase in sales. This modest improvement in market conditions has probably helped to support house prices.

-- The recent increase in sales may have been driven by first-time buyers seeking to beat the end of the stamp duty holiday. The proportion of house purchasers who are first-time buyers increased between the final quarter of 2011 and the first quarter of 2012. This suggests that the ending of the temporary increase in the starting threshold of stamp duty for first-time buyers from GBP125,000 to GBP250,000 in late March encouraged some to buy before the threshold reverted to the lower level. An extra four in ten first-time buyers - 150,000 in total - have been exempt from paying stamp duty as a result of the Government temporarily doubling the starting threshold over the past two years.

The Halifax House Price Index is prepared from information that we believe is collated with care, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. (c) Bank of Scotland plc all rights reserved 2012.

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