Property monitor
Monday, 18 Aug 2008 00:01
Property prices continue their slide
The property bureau at inthenews.co.uk takes a look at the most recent house price indicators to let you know the current state of the British housing market.
The UK housing market
headed inexorably downwards in July.
Hometrack HPI
July saw the tenth consecutive fall in house prices. Average house prices were down by 1.2 per cent over the month, compared to a one per cent fall in June and a 4.4 per cent fall over the last 12 months - this represents the lowest annual rate of growth since the Hometrack survey began in 2001.
"Market activity has fallen over the last three months with demand down 20 per cent. The vast majority of homeowners it seems, are choosing not to move, but deciding instead to play a waiting game," commented Richard Donnell, Hometrack's director of research.
Halifax HPI
July: House prices fall 1.7 per cent. Annual house prices fall 8.8 per cent.
House prices fell by 1.7 per cent in July. This was smaller than the falls in both the previous two months – May (-2.5 per cent) and June (-1.9 per cent).
On an annual basis, house prices are now 8.8 per cent lower – taking them to the same as level as they were in June 2006.
Suren Thiru, Halifax economist, said: "House prices fell by 1.7 per cent in July. Pressure on householders' income, together with a very significant reduction in mortgage finance due to the global financial markets crisis, is constraining potential house buyers' ability to enter the market.
"This is resulting in both lower prices and activity levels."
Nationwide HPI
June: Property prices slip by 1.7 per cent. Nationwide index reports fall for eigth consecutive month.
Property prices are now falling at the fastest rate since Nationwide began recording data in 1991, according to the building society's latest house price index.
Average falls across the country totalled 1.7 per cent in July – more than double the 0.8 per cent decline recorded in June. The average property price in the UK has now fallen £3,099 – down from £172,415 in June to £169,316 in July. This is the lowest level since August 2006.
"The weakening economy and poor housing market sentiment do not suggest that the market will recover quickly," said Fionnuala Earley, Nationwide's chief economist.
Land Registry
June: Annual house price growth declined to 0.1 per cent Land Registry figures show house price growth fell for the tenth month in a row in June.
Average house prices in England and Wales fell one per cent in June, taking the average price to £180,781.
Annual house price growth has a declined for the tenth consecutive month, and now stands at just 0.1 per cent.
Rightmove HPI
June: Asking prices fell 1.8 per cent. Rightmove says new sellers are now asking two per cent less than a year ago
Asking prices in the UK property market slumped further in July, according to the latest house price index from Rightmove.co.uk.
The drop in average asking prices is 1.8 per cent, or £4,345 less than last July, according to Rightmove.
Miles Shipside, commercial director of Rightmove, said: "While this £4,000 reduction is on top of a £3,000 drop last month, sellers' pricing needs to be at the level where deals are being done.
"It could be a lot better outcome to price aggressively and sell now, rather than accept a bigger reduction later as prices continue to fall."
Bank of England lending figures
June: Number of mortgages approved falls to new low.
Lending for house purchases has fallen by almost 70 per cent over the course of the last year, according to the Bank of England.
Just 36,000 mortgages were agreed in June, down from 42,000 in May.
Net mortgage lending fell to £3.1 billion, the Bank said - its lowest level since October 2000.
Rics housing market survey
In July, 83.9 per cent more chartered surveyors reported a fall than a rise in house prices, an decrease from 86.9 per cent in June..
The Rics house price balance improved slightly for the third consecutive month but still remains at a significantly low level; with 83.9 percent more chartered surveyors reported a fall rather than a rise in house prices, a decrease from 86.9 per cent in June.
Rics spokesperson Ian Perry said: "The lack of mortgage finance has brought the housing market to a virtual standstill with first-time buyers rapidly becoming an endangered species.
"Going forward, there are signs that sales activity might pick up a little as sellers start to re-evaluate unrealistic asking prices."