 According to the Nationwide, UK house prices dropped by 1.7% during September for 11th consecutive month.
The building society saw a 12.4% annual drop in prices, pushing the cost of the average UK house down to approx £161,797, that's £20,000 less than a year ago. The pace of house price drops had eventually stabilised at the moment but warned the next two years would be difficult.
Looking at the United Kingdom as a whole, Southern England appeared to be faring the worse compared with the north year on year. Wales saw the least decline in prices.
The rate of falling prices has remained the same as August as in previous three months.
"Looking back over the year, there have been some astonishing and unpredictable developments in the housing and financial markets," said Fionnuala Earley, Nationwide's chief economist.
But she added:"In the long-term there was no reason why house prices would not continue to grow in real terms even though there was a sharp correction now. How long the correction lasts and how deep the fall in prices is depends largely on sentiment, as well as an end to the turmoil in the financial markets."
The July to September period showed the most dramatic fall in house prices in the south of England compared with the north. Of the six regions, four were registering two figure price declines. They were in the South, with East Anglia and the South West showing the largest annual drops, both 11.4%. Northern Ireland saw their homes lose nearly one third of their value. But in reality the prices are now equivalent to May 2006 on average.
United Kindom £165.188: Last Quarter Change - 4.6%: Annual Change - 10.3%:
South West £181.074: Last quarter Change -6.4% Annual Change -11.4%:
With the current problems in the financial markets globally and the recent increase in some mortgage rates and the continuing reduction on the supply of loans may show that further price falls are over the next months. It should be a first-time buyers dream at present with prices falling but buyers being able to secure a mortgage has dropped by 40% too.
Hundreds of young couples and singles see their best chance of home ownership in years as houses become more affordable. However, many are not buying yet, but are playing the waiting game and trying to judge the bottom of the house market.
|
(0 vote)