Renters vindicated as house prices fall yet again

28 2008
Confidence in the UK property market is likely to have been further damaged with the news that prices fell for the tenth month in a row in July.

Already, observers have reported that millions of would-be buyers are now choosing to stay in rental accommodation rather than taking a risk and buying in an uncertain market.

Now market research carried out by Hometrack has revealed that average prices fell by 1.2 per cent over the month.

This takes the 12-month decline to 4.4 per cent and means that the average UK home costs the same as it did in October 2006, £168,500, news which will not be welcomed by those who have made a purchase after this point.

Commenting on the figures, Richard Donnell, Hometrack's research director, stated: "With no immediate end in sight to the current uncertainty, activity levels are likely to remain suppressed, with prices remaining under pressure into the autumn."

At the same time, Hometrack has revealed that sellers are now having to accept 91 per cent of their initial asking price, prompting many to rent out their homes to tenants rather than attempt to sell them. ADNFCR-1219-ID-18704556-ADNFCR

Related Articles
Rental investment remains strong in north-east
Investment in rental properties has remained sustained in the north-east...

Properties in the capital take 7.5% dive
Top properties in London are falling at record levels, it has been...

Pensioners could increase falls in property prices
Britain is currently home to 1.7 million pensioners who are relying on the...

BBA and Rics agree that housing market will not improve for months
The British Bankers Association (BBA) has suggested that house prices are...

House price declines 'slowing but not finished'
Recent slowdowns in the speed at which house prices are declining in value...