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House prices still falling – but only just

London had a positive monthly change of 1.4%, making it the region with the greatest monthly change. The average property value here is £302,411.

The South West region experienced the most significant annual price fall with a movement of -18%.

The North East showed the most significant monthly price fall with a movement of -2.6%.

Middlesbrough had the most significant monthly house price fall during April with a movement of -4.4%. Only York experienced no monthly price movement.

The most up-to-date figures available show that during February 2009 the number of completed house sales fell 50% to 25,592 from 51,121 in February 2008.

In London 2933 house sales were completed in February 2009 compared with 7152 in February 2008. This represents a fall of 59%.

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4 thoughts on “House prices still falling – but only just

  1. smell the coffee says:

    What where and HOW do you summise the Land Registry data offers any indication the bottom of the market has been reached?

    Land Regisrty numbers are based on a tiny, minicule data sample and is subject to wild fluctuations accordingly. There are also a number of other issues relating to the numbers, but really, other than a few Estate Agents, who else truly believes the bottom has been reached?

  2. kate says:

    Nationwide last week said that the ONLY reason property prices were showing an increase was because there were so few properties on the market, they said that if more properties came on the market house price crash would resume. The survey of building societies last week confirmed that lenders are expecting at least a further 10% falls this year. Most economists agree that until mortgage approvals double property will continue to fall, yet the money simply is not there to allow approvals to double. The mortgage market is down nearly 2/3rds due to the closure of the RMBS market that fueled the property bubble from 2001. Prior to 2001 lenders were reliant on deposits and now they will have to return to old fashioned lending based sadly on dwindling deposits as the RMBS market will not re open for years taking with it the £200bn in mortgage lendiing it gave to the market in 2007 alone. So for approvals to double property values are going to have to come down in line with sensible and sustainable lending levels based on dwindling deposits due to low interest rates and Moodys downgrades based on the “assumption now being 40% falls”. Throw into the equation that interest rates have only one way to go and possible regulation on loan to income of around 3.5 how can property do anything but fall 40% minimum? Currently property is selling at 25 – 30% off peak , by January we should see 30 -40% and more falls predicted.

  3. chris newman says:

    Kate, you are talking rubbish again. You point out yourself that house prices are increasing because of a shortage of property on the market. This shortage is likley to get worse, not better, as developers have cut back drastically on buying land and developing new homes. Unless developers revert to land buying (which to date they aren’t) housing supply will remain below demand thus supporting prices. I wonder about your motives for your predctions of 40% falls. Are you looking to buy a house yourself?!

  4. Andrew says:

    The problem with the recovery of this property downturn is that there will be a severe shortage of property.

    In previous downturns, vendors could just put their property on the market when there were “green shoots” of recovery at ZERO cost to them, they could “test the water”. If it didn’t sell then so be it – they had lost nothing.

    After the introduction of the HIP and EPC a vendor now has to pay for these before they can put their property on the market.

    With people reluctant to commit themselves and such uncertainty over financial security, people will not take the risk of putting their property up for sale until they know they will have a chance of selling it.

    The downturn will benefit those vendors and purchasers who have cash. If house prices go up, and the mortgage providers require large deposits, then a number of people will be out priced of the property market.

    Does anybody know how the German residential property market is being affected? – as most Germans seem to rent.

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