House Prices Stagnate - 30.08.05

UK Mortgage News

Home owners were informed this week that the likelihood of any substantial rise in their property values is, regrettably, slim. The housing market in general has witnessed another drop of 0.1% during August which is an improvement on July's drop of 0.2%.

Property prices have been falling for a 14 month period and is showing very little sign of recovering. The average national house price is £161,000 against a high of £167,000 in June of 2004. That puts it down by a cut of 3.7% overall over the last 12 months. Prices have been forced down due to an increase of almost 2.1% in the number of new properties coming on the market against a fall of 0.5% of active buyers. The only regions to show any signs of a property price increase are; East London, West Midlands amd Leicestershire. All this has contributed to a buyers market where deals of 6% cuts in asking prices have flourished. A turnaround is not expected by the housing market for at least another 3 years and it is now taking on average amost 8 weeks to sell a property.

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