News: Value of Flats Plummets

Wed, 13 Aug 08

The value of flats has plummeted, according to latest Government figures.

Housing market figures released this week by the Department for Communities and Local Government (DCLG), show that the value of flats fell by 3.6% between May and June.

This contributed to a fall in the average home between these two months from £216,625 to £215, 029.

In comparison semi-detached houses fell by only 0.9% and terraced houses by 0.3% during the period.

The price of bungalows actually increased during the period, by 0.8%, as did detached homes, which were up 0.7%.

Annual house price growth is now just 0.6%, compared with a 3% rate of annual growth in May and 7.9% in January.

The DCLG figures are among the most accurate in the market as they are based on completed sales, however as information takes a number of weeks to collect the figures are at least a month behind information published by mortgage lenders.

The average house price in England now stands at £221,763, compared to £162,178 in Wales, £167,168 in Scotland and £220,199 in Northern Ireland.

Regionally in England prices were up compared to June 2007, in the south-east by 1.8%, the east by 1.5%, London by 1.4% and Yorkshire and the Humber by 0.7%.

However prices fell over the year, in the north-east, by 0.2%, in the south-west (down 0.4%) as well as the east midlands and north west (both down 1.1%).

The worst hit area was the west midlands where prices fell by 1.9%.

The DCLG figures also measure the average price of homes bought by first-time buyers. This figure was down 0.5% in June compared to the same time last year. 



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