The Halifax reported that house prices fell by 1.1% in November, the third consecutive month of falling house prices. This is the first time since 1995 that they have reported 3 months of price drops.
The Bank Of England Monetary Policy Committee will meet today to discuss whether interest rates should be altered tomorrow. Pressure is on for a rate cut to prevent the economy heading towards a recession next year.
House prices have been affected by rising mortgage payments and the effective lowering of salaries due to inflation. It is this inflation problem that could cause the Bank to hold interest rates at their current level into next year. Whilst this may be bad news for borrowers, net savers are benefiting.
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