September sees 2.2pc price drop

28 2008
Recent figures from the Land Registry show a fall in house prices of 2.2 per cent throughout September, bringing the total fall in a year to eight per cent.

The average home now stands at £168,814 according to the latest research which is based on completed sales.

Because the Land Registry figures are based on completed sales the total fall in prices is lagging behind lenders' figures which claim 12 per cent has been knocked off house prices.

However, the severity of the September house price fall is a much sharper decline than has been witnessed in most other months recorded by lenders, meaning the true house price fall, once Land Registry figures have caught up, could be more severe than the 12 per cent currently claimed.

"The support to the housing market coming from the likely faster and deeper cutting of interest rates by the Bank of England will be countered by recession, faster rising unemployment, and only gradual easing of extremely tight credit conditions," suggested chief economist for analysts IHS Global Insight, Howard Archer.

This may explain why rental demand has shown such a rise this year, as Your Move reports a 50 per cent increase in demand for rental property.
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