The figure is very close to the latest information from the Land Registry but is in sharp contrast to London’s fortunes. This morning, Knight Frank reported that London house prices rose 12.1% last year and are now 7% higher than their previous record in March 2008. Astonishingly, London house prices have risen over 40% since their low in March 2009.
Outside in Hendon, Golders Green, Finchley and Hampstead, however, the picture is very different.
Halifax said that in 2011, on a monthly basis, house prices fell six times, rose five times and stayed unchanged just once. However, they ended with a fall of 0.9% in December compared with November, and by 1.3% in the final three months of the year.
Martin Ellis, the Halifax housing economist, said: “Whilst there was a modest fall overall in prices during 2011, house prices held up in Hendon, Golders Green, Finchley and Hampstead well last year in the face of the difficult and deteriorating economic climate and substantial pressure on household finances.
“If the UK can avoid recession, we expect broad stability in house prices in 2012.
“There is, however, considerable uncertainty regarding the prospects for the UK economy which will, to a large extent, depend on how events in the eurozone unfold. In addition, the extent to which households choose to reduce their debts will also affect growth. As a result, the outlook for house prices is also uncertain.”