Further falls in house prices in November
The Land Registry has recently released figures that show that house prices fell by a nearly 2 percent in November, taking another tumble of around 1.9 percent. Officials said that as market activity fell for yet another month the value of homes also fell.
The November fall resulted in the annual house price fall reaching 12.2 percent, with this said to be the fifteenth house price drop in a row.
According to the Land Registry there was also a drop in the level of activity for the third quarter of the year, with a drop in the number of property sales. At the end of the third quarter the number of property sales had fallen by more than 50 percent compared to the same quarter the previous year according to the figures from the Land Registry.
Officials said that whilst it was hoped that first time buyers may be able to revive the market as a result of house prices falling this did not happen because so many lenders were demanding far higher deposits from borrowers, which most first time buyers simply were unable to manage. Increased difficulties in getting finance from increasingly stringent lenders also resulted in fewer people making property purchases.
The registry report indicated that the biggest house price falls in November were experienced with terraced houses. The survey came just after the Bank of England also released a report showing that fewer people were spending on their equity and more were trying to repay their mortgages as quickly as possible. In the third quarter of the year homeowners are said to have put nearly £6 billion worth of equity back into their homes.
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