Increased supply and lower demand points to house price fall
The fall in UK house prices has increased according to the latest figures on the UK housing market from independent property data firm Hometrack.
House prices fell by 0.2 per cent in October, after previously falling by 0.1 per cent in each of the last five months. The increased decline was down to low levels of consumer confidence and concerns over the outlook for the economy.
House prices have now fallen by 2.8 per cent since October 2010, according to Hometrack’s figures.
Prices in the Midlands and the North East dropped at the fastest rate and prices in London failed to rise for the first time in seven months, remaining static.
The number of postcode areas that experienced a fall in house prices grew. This was up from 25 per cent in September to 34 per cent in October.
Demand for housing fell for the third consecutive month, down by 0.2 per cent in October but the supply of properties increased by 1.3 per cent and has risen by eleven per cent in the last six months. This is a sign that house prices will fall at a faster rate in the coming months.
Richard Donnell Director of Research at Hometrack said: “Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices according to evidence from the latest monthly housing market survey from Hometrack, the property analytics business.”
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