Renters choices backed up as house price slide continues

07 2008
House prices have fallen by 8.8 per cent over the past 12 months according to new figures that support the view that renting is the best option.

Just this week, the Nationwide Building Society reported that house prices across the country fell for the ninth month in a row in July.

Now, a new report from the country's biggest mortgage lender, Halifax, has backed this up, revealing that Julys' year-on-year drop of 8.8 per cent comes on the back of a 6.1 per cent drop in June.

However, according to Halifax economist Suren Thiru, the market is still underpinned by strong fundamentals, meaning that the slump won't be as severe as that seen in the early 1990s.

"A solid labour market, low interest rates and a shortage of new houses continue to support the market," he explained.

"The labour market is the key driver of the housing market and the number of people in employment is at a record high."

However, this reassurance is unlikely to tempt many people out of the rental sector and into the property market, with most unwilling to make a commitment in such an uncertain economic environment. ADNFCR-1219-ID-18721301-ADNFCR

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