House prices now more than 10% lower than last year
Following a ten year house price boom, which lasted until last October, homeowners in the UK have seen the value of their homes fall month on month, with property prices having dropped for the last consecutive ten months according to industry officials. This has raised concerns for many over falling into negative equity. One recent report has shown that annual house price falls have now hit double digits for the first time in eighteen years, with the last double digit fall seen in 1990.
A report has recently been released by the Nationwide building society, which shows that house prices are now down by 10.5% compared to last year. Compared to July the value of homes in August fell by a further 1.9%, bringing the annual house price fall into double digits. Nationwide officials have said that the average house prices is now £164,654, which reflects a drop of around £19,000 compared to the same period last year. Officials have said that it is most likely that the market will remain subdued for some time to come.
Although some officials have suggested that the huge discount on properties compared to this time last year could see house sales pick up slightly one official said that property prices were still being driven down by the number of properties still on estate agents’ books.
She also said that the market was being affected by the lack of mortgages available, which was having a knock on effect on house sale activity, stating: “There is clearly less mortgage borrowing taking place in the current market, but those borrowers choosing a new loan are tending to opt for fixed rate loans, even though they have been more expensive than trackers.”
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