Press release: 16 Jul 2008
Asking prices have dropped in six out of nine regions in England over the last 12 months, according to latest figures from Home.co.uk.
The figures come as the Bank of England warned that the UK economy faces further rises in inflation over the coming year.
When inflation is factored in, decreases in asking prices are more pronounced and all regions in England effectively saw a slide in the value of homes, the Home.co.uk figures show.
Homeowners are also left with the dual effects of disappearing equity in their property and the rising cost of living.
Doug Shephard, from Home.co.uk, said: "Even those who think that their home's price is holding up and staying stable are in fact moving backwards when inflation is factored in whilst household bills are soaring."
He added that those who put up small deposits and have a low level of equity in their homes will be the worst affected.
"Those with small amounts of equity of around 5% and 10% in their home are the ones who will feel this the most. In a matter of only a few months they are seeing that investment wiped out.
"Inflation is often forgotten by homeowners but they need to factor it in to come up with a realistic picture of how much their home's value has dropped," Shephard added.
The six regions in England to see a year on year fall in asking prices are the north-west, north east, west midlands, east midlands, south west and south east. Of these the east midlands saw the biggest fall, of 2.5%. Asking prices in Wales dropped by 2.1%.
Although greater London, East Anglia and Yorkshire & Humber saw year on year increases, all were below June's consumer price index of 3.8% and the retail price index of 4.6%.
Scotland saw an increase of 3.7%, but this is effectively a drop of 0.9% when the retail price index is factored in.
Across England and Wales Home.co.uk's figures show that asking prices fell by 0.5% during July and are down 0.2% year on year. The mix adjusted average asking price of homes in England and Wales, advertised on the open market, now stands at £254,818, down £1,294 on last month's figure.
Notes for Editors
Over the last 26 years, Home.co.uk has become established as a dynamic, innovative and ethical service. By providing the UK's most comprehensive Property Search and Estate Agents directory coupled with detailed House Price analysis, Home.co.uk delivers the real power of the Internet to inform and empower estate agents, homebuyers, renters, landlords and sellers in across the UK.
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