January house prices down 0.3%

Monday, 11 February 2008 12:00

UK property prices fell by 0.3 per cent in January, but fears of a market collapse are groundless, according to the latest housing survey.

Chesterton's Poll of Polls conducted by the Centre for Economics and Business Research (CEBR) found the average price of a property was £146,662 last month, compared to £140,276 in January 2007 - revealing prices have increased over the year.

What is more, the poll showed the top end of the market was continuing to grow vigorously. Figures showed the top 20 per cent of properties was worth 12.7 per cent more than a year ago.

Douglas Williams, chief executive of CEBR, said: "The data is confirming UK house prices are edging down. Our current economic view suggests it is unlikely there will be a house price collapse.

"It is more likely there will be a readjustment in the market, following high house price growth - of more than five per cent per annum - over the last decade."

London enjoyed the most robust growth over the last year with prices in 30 of the 37 boroughs growing by over ten per cent.

Kensington and Chelsea experienced a rise of 24.8 per cent in house prices, more than double the average price of a property in Methyr Tydfyl in Wales.

In Northern Ireland the average price went up by 17.9 per cent over the year, but prices fell in the East Midlands by 0.1 per cent.

Robert Bartlett, chief executive of Chesterton, the estate agency which commissioned the survey, said he thinks prices are undergoing a correction.

He concluded: "I think these figures show now is a perfect time to buy. There is a wide range of properties on the market and some bargains to be had."

• Tags:
• house prices
,
• news
,
• property