By Ilona Billington
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)–U.K. house prices fell in the final month of 2011 and also finished the year mildly lower than they were in January, and, looking ahead, U.K. lender Halifax expects little overall change over 2012 amid the continued uncertain economic climate as the euro zone crisis rolls on.
The monthly Halifax house price index reported Friday that house prices fell 0.9% on the month in December and were 1.3% lower than a year earlier.
The outcome is similar to the declines of 0.9% on the month and 1.0% on the year recorded in November.
But in the three months to November the lender said house prices declined just 0.1% compared with the three months to September.
“House prices held up well last year in the face of the difficult and deteriorating economic climate and substantial pressure on households’ finances,” said Halifax economist Martin Ellis.
“If the U.K. can avoid recession, we expect broad stability in house prices in 2012. There is, however, considerable uncertainty regarding the prospects for the U.K. economy which will, to a large extent, depend on how events in the euro zone unfold… The outlook for house prices is also uncertain,” Ellis said.
Website: http://www.halifax.co.uk
-Ilona Billington, Dow Jones Newswires, +44 20 7842 9452;
ilona.billington@dowjones.com
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