According to a recent report the value of homes across the UK has plummeted since last summer, with industry officials claiming that house prices have fallen by around £15,000 on average since last summer. The data was recently released by the Halifax, with claims that house prices peaked last August, around the same time that the global credit crunch began to make its way to the UK, and since then have been declining.

Figures showed that in May there was a 2.4% fall in house prices in the UK, which saw property prices plummet in many regions. The average house prices fall for the month was nearly £5000. This leaves the average house price in the UK at £184,111. Officials say that this was the largest year on year fall since the 1990s, with house prices in May of last year enjoying increases of 10.6% year on year, reflecting the stark difference between last May and this May.

The Bank of England has also released figures that show mortgage lending had fallen by around 50% compared to last year, adding to the bleak outlook for the mortgage and housing sectors. One official said: ‘The latest data on the housing market are undeniably alarming. Clearly, the downward pressure on house prices coming from stretched buyer affordability and tight lending conditions is now biting hard. Elevated affordability pressures on potential house buyers stem from high house prices and modest real disposable income growth, while ongoing tight credit conditions are leading to significantly fewer and more expensive mortgages being available.’

He went on to state: ‘Furthermore, potential house buyers now have to provide higher deposit levels, which is a particularly major problem for first-time buyers.’

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