House price falls coming faster than crash of the 90’s
According to a recently released report house price falls in the UK are coming at a faster pace than the hour price falls during the crash of the 1990s. November saw the property market go through a sharp and rapid deterioration, with data from the Halifax suggesting that house prices had fallen by over 2.5 percent over the month. This took the annual house price fall for November to over 16 percent based on these Halifax figures, wiping over £30,000 from the value of the average property on an annual basis.
Officials have said that the annual house price drop that was seen in November was a sharper one than was seen in the housing market downturn during the 1990s. The monthly drop for the month of November was the worst that had been seen since 1992 according to the reports. One industry official said that it was likely that the house price falls would continue next year amidst a range of difficult conditions, and this could see the situation get even worse even in comparison to the dark days of the 1990’s house price crash
The economist from Global Insight stated: ‘Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, faster rising unemployment, muted income growth and widespread expectations that house prices form a powerful set of negative factors weighing down on the housing market.’
He added: ‘Consequently, house prices seem set to fall significantly further over the coming months. IHS Global Insight forecasts house prices to fall by a further 15% on the Halifax measure in 2009 after a likely decline of some 18% in 2008.’
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