House prices slump to 2005 levels

Prices have fallen just short of 15% on an annual basis, though the house price to earnings ratio has improved substantially, from a peak of 5.84 in July 2007 to 4.56 last month - the lowest level for more than five years. The number of mortgages approved to finance house purchase was broadly unchanged for the fourth successive month in October at a seasonally adjusted 32,000, with Halifax suggesting the recent flattening off in approvals demonstrates that housing market activity may be stabilising. Martin Ellis, chief economist at Halifax, said: "The combination of high house prices in...