House prices fell by £5,000 in March
The latest Halifax house price report, released today, showed prices falling at the fastest monthly rate since September 1992, when prices fell by 3% in a month.
The average home is now worth just 1.1% more than a year ago and prices have fallen 1% in the first quarter of 2008. The annual rate of house price inflation has now slipped back from a peak of 11.4% in August 2007 and dipped substantially from the 4.2% recorded in February 2008.
When adjusted for inflation, currently 2.5% at the CPI measure, the average home has now fallen in value in real terms over the past year and costs £191,556 – compared to £196,465 in February. The market could see worse to come with the round of belt-tightening by mortgage lenders seen in the past fortnight yet to filter through.
The figures will add to mounting concerns among economists that the UK property market is facing a pronounced slump. Howard Archer, chief UK economist at analysts Global Insight, said: 'It is important not to put too much emphasis on one piece of data, and it should also be borne in mind that house prices were still only down 1% quarter-on-quarter in the first quarter of 2008, according to the Halifax. Nevertheless, the overall impression is that house prices were buckling markedly under the substantial pressure emanating from increased affordability constraints and markedly tighter lending conditions even before the latest escalation of the credit crunch.'
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The average home is now worth just 1.1% more than a year ago and prices have fallen 1% in the first quarter of 2008. The annual rate of house price inflation has now slipped back from a peak of 11.4% in August 2007 and dipped substantially from the 4.2% recorded in February 2008.
When adjusted for inflation, currently 2.5% at the CPI measure, the average home has now fallen in value in real terms over the past year and costs £191,556 – compared to £196,465 in February. The market could see worse to come with the round of belt-tightening by mortgage lenders seen in the past fortnight yet to filter through.
The figures will add to mounting concerns among economists that the UK property market is facing a pronounced slump. Howard Archer, chief UK economist at analysts Global Insight, said: 'It is important not to put too much emphasis on one piece of data, and it should also be borne in mind that house prices were still only down 1% quarter-on-quarter in the first quarter of 2008, according to the Halifax. Nevertheless, the overall impression is that house prices were buckling markedly under the substantial pressure emanating from increased affordability constraints and markedly tighter lending conditions even before the latest escalation of the credit crunch.'
SafeTrade, Local Approved and Recommended Builders, Plumbers, Electricians, Plasterers, Joiners, Decorators, Glaziers and Roofers etc