British house prices continued to slide in March and are likely to continue moving lower due to the recession and credit crunch, despite improvements in affordability, mortgage lender Halifax said Friday in its monthly housing report.
The average U.K. house price declined 1.9% in March to 157,326 pounds ($231,866). In the three months ending in March, the average price was down 17.5% compared to the same period last year. Halifax says quarterly year-on-year figures provide a better picture of underlying trends.
The average price was last at this level in May 2004.
The average price fell 2.3% in February, for a year-on-year decline of 17.7% in the three months ending in February.
While completed sales were cut in half between 2007 and 2008 there were some "very tentative" signs that activity may be stabilizing, said Martin Ellis, a Halifax housing economist, noting that industry-wide data showed the February mortgage approvals rose to their highest level since May of last year.
Meanwhile, the price declines continue to bring down Halifax's house-price-to-earnings ratio -- a measure of affordability. The ratio declined to 4.34 in March, its lowest level since early 2003, Halifax said.
Ellis said housing-market conditions are likely to remain difficult for the rest of the year due to rising unemployment, low consumer confidence and the impact of the financial crisis on mortgage availability.
