In what will come as a further blow to homeowners’ confidence, a survey released today shows that the average house price in the UK has now dropped to levels last seen more than two and a half years ago, with prices down 7.3% on this time last year.
Hometrack, which monitors the UK housing market, says that the fall in house prices increased faster in October, than in either August or September, adding that the supply of new homes coming to the market has also dried up.
'Weak consumer confidence continues to undermine demand for housing with a 35% fall in the number of applicants registering with agents over the last six months. The survey shows that nearly three quarters of the country saw price falls over October with the largest declines on a regional basis over the last 12 months seen in London and the South West,' says Richard Donnell, Hometrack’s director of research.
Despite the gloom, the number of deals being completed in October was up 5.4%, which Mr Donnell argues is because sellers are becoming more realistic about they what they can commend for their homes.
The Independent, The Guardian