Record low interest rates may save homeowners from a property slump despite house prices showing their first annual declines in a year, Halifax said today.
Its latest index showed average prices edging 0.1% lower last month to £164,708, leaving property costs 0.7% down on November last year, as sliding demand combined with more properties for sale hit the market.
Prices have fallen 2.4% so far this year.
But housing economist Martin Ellis said there were "tentative signs" that homeowners were becoming more reluctant to put their properties on the market, which could ease the downward pressure on prices if the trend continues.
Interest rates have been at 0.5% since March last year.
"Interest rates are likely to remain very low for an extended period, which will support the improved mortgage affordability position for homeowners," said Ellis.
"As a result, we do not expect to see a significant fall in house prices."
The typical new buyer is paying an average 29% of disposable income in mortgage costs, down from 48% at the peak of the market, Ellis added.
IHS Global Insight's Howard Archer said the Halifax's survey continued the trend of "consistently weak" data after the Nationwide's 0.3% decline last week.
"The housing market really does not seem to have got much going for it at the moment," he added.
