UK House Prices Continue Slide In December

Home prices in the U.K. continued to drop in December as prospective hombuyers remain reluctant given the country’s uncertain economic outlook, according toThe Daily Telegraph. On Monday,Halifaxsaid that home prices dropped 1.3% in December to bring the average price down over £2,000 to £163,435, outpacing economists forecasts for a 0.4% decline. The drop brought prices 3.4% below the level recorded one year earlier in December, and 1.6% lower in the fourth quarter of 2010 than the same period in 2009.

Halifax chief economistMartin Ellisis anticipating continued weakness in the housing market, “We expect limited movement in house prices during 2011 but with the risks on the downside.” Ellis cited “Uncertainty about the economy, weak earnings growth, and higher taxes” as the principal factors that will limit demand. Separately, homebuilderPersimmonsaid that prices will likely be “fairly flat” in 2011, and cited the mortgages as “the critical issue for the industry as a whole,” even as rates remain low.

Click here to read the story from The Daily Telegraph.