12-12-2007
DCLG reports continued decline in house prices
The Department of Communities and Local Government (DCLG) has confirmed that house prices are continuing to cool.
Data released for October by the DCLG shows that house price growth in October declined by 0.2 per cent to 0.1 per cent.
It was also revealed that the average cost of a property is now £220,195.
These statistics follow the Bank of England's decision last Thursday to reduce interest rates from 5.75 per cent to 5.5 per cent.
"A week ago I wrote that the Bank of England shouldn't cut rates on Thursday, but would anyway - which is, of course, what happened," said Liam Halligan of the Telegraph.
"But when I heard the news - base rates were down to 5.5 per cent - my smugness was clouded by a nagging sense that the Bank had made a wrong move," he added.
Expressed in annual terms, compared with September's inflation rate of 10.8 per cent, house prices grew by a total of 11.3 per cent in October.