House prices fall 0.1%

Monday, 29 October 2007 12:00

House prices fell for the first time in two years in October - down 0.1 per cent.

According to Hometrack, prices were down in all regions over the month, except the West Midlands where house values held firm.

Annual house price growth fell to 4.4 per cent, making the average home worth £176,100.

The data follow Land Registry figures for September showing 0.4 per cent growth in house prices.

"The fall in prices over October is not unexpected. After several months of weaker buyer confidence, falling levels of demand and declining sales volumes, prices were bound to be affected," said Richard Donnell, Hometrack director of research.

"We expect further small price falls in the months ahead but these are likely to remain limited as there remains no evidence of any increase in the supply of homes for sale. If anything the current uncertainty appears to be resulting in a decline in the numbers of homes coming to the market which is likely to support underlying prices in the coming months."

Falls in property prices came in particular from the higher ends of the market.

Meanwhile estate agent Your Move reports a 1.2 per cent rise in agreed sale prices, after the firm recorded falls in prices in September following the Northern Rock debacle.

However, the Your Move finds the shortage of housing coming onto the market was keeping the market buoyant.

"House prices have been levelling out over the autumn, but we are still seeing some inflation in the rate of growth," said David Newnes, managing director of Your Move.

"There has been speculation that we will see a downturn in the property market, but Your Move's data clearly shows consumer expectations for the property market remain optimistic."

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