First double digit drop
House prices fell by almost 11% in the 12 months to July, Halifax said today - thought to be the first double-digit drop since the lender began publishing a monthly survey in the mid-1980s.
The UK's largest mortgage lender said the average price of a home in the UK had fallen by almost £22,000 over the year, from £199,084 in July 2007 to £177,351 last month.
Prices have been falling since last August, when Halifax's house price index reached a peak of £199,600.
The past three months have all seen falls in excess of 1.5%, with July's 1.7% drop following a fall of 2.5% in May and 1.9% in June.
The 10.9% drop revealed by comparing the seasonally adjusted average price in July 2007 with that in the same month this year is bigger than the 8.8% year-on-year fall quoted by the lender.
Commentators at Capital Economics said it was the first time annual house price falls on the index had entered double digits since it was launched in 1984, and that the figures for the past three months showed prices had fallen at a rate of 20% a year.
They described Halifax's figures as "dire", adding: "With the housing market still plagued by tight lending criteria, falling buyer confidence and now a rapidly weakening economy, the end for this housing market correction remains a long way off."
More Recent News
- New Year same trouble Alex Coxall 6 Jan. 2009 The 2009 RICS forecast predicts a further fall this year of 10% in average property price, which would mean a peak to trough drop of 25%. The predictions are based on the continued reluctance of lenders to lend and the increasingly glum economic climate we are facing. Read more
- Darling considers credit guarantees Bloomberg.com 11 Dec. 2008 Dec. 10 (Bloomberg) -- U.K. Chancellor of the Exchequer Alistair Darling is considering credit guarantees for households and companies to spur bank lending, a person familiar with the plan said. Read more
- Rics figures show November fall Alex Coxall 11 Dec. 2008 Figures released by the Royal Institution of Chartered Surveyors (Rics) show that property prices have continued to decline during November. Read more
- Price drop slows slightly Alex Coxall 27 Nov. 2008 The rate of house price drop fell in November according to figures released by Nationwide today. The market however remains nearly 14 % lower than it was a year ago, as buyers remain worried and lending remains curbed. Read more
- Housing market Downfall 27 Nov. 2008 Famous scene from an award winning film reworked. Read more
Be the first to comment
Nobody has made any comments on this entry - be the first to have your say below.