Home.co.uk
Home.co.uk

News: House Prices Drop 0.1%, Says Land Registry

Wed, 30 Sep 09

House prices dropped by 0.1% between July and August in England and Wales, according to latest figures released by the Land Registry.

The figures took the value of the average home to £155,968 in August and indicate that house prices are levelling out following a number of monthly rises this year.

The annual rate of decline for August was 9.4% compared to 16% in February, the Land Registry added.

David Brown, commercial director of LSL Property Services, supports the view that the figures show a stabilisation in prices.

He said: “Even though the small monthly decline seems like a blow to the housing market’s recovery, the annual decline has slowed significantly.”

However, he added that mortgage lending conditions need to improve if this stabilisation is to be converted into a recovery.

He said: “Several factors are still holding back the numbers of completions: a colossal shortage of stock, continued tight mortgage lending and borrowers’ need for substantial deposits.  If lenders begin to open their purse strings to homebuyers and investors, we may see the market hit the early stages of recovery.”

Home.co.uk’s latest Asking Price Index indicates that prices could drop further. The figures show that the mix-adjusted average asking price for homes on the market in England and Wales fell by a 0.6% over the month leading up to the September report.

 

By Joe Lepper

See also: Asking Price Index, House Prices and Trends by Town and Postcode, Mortgages

Back to: News Index