UK home prices have now fallen to the lowest point in almost two years, according to the LSL/Services Acadametrics index.  A recent 3% slide has occurred in the second quarter of this year.  The average home is now valued at just north of 217,000 pounds.  The fall in prices on an average annual basis is slowing, but the transaction amount has also been falling at a rate of 6%.  Mortgage deals with multiple incentives have been disproven to cause a rise in demand across the UK.  The exception remains London, which has seen consistent price growth for the last four years straight.

David Newnes, director of LSL Property Services, commented on the short and long term tendencies of the recently released data, saying: "The fact that prices have only fallen by 0.1% means the steep declines between April and June have ceased. Transactions met their expected seasonal rise of 5% in July. This indicates that the market is not falling off a cliff in the short term, but that it remains weak in the longer term.

"Of all types of property, flats have shown the weakest growth in transactions. This indicates that the first time buyers who would normally be driving the market for smaller properties remain excluded from the market."

LSL also examined return on investment (ROI) figures for those who have purchased property during the past five years.  Paralleling the economic status of pre-crisis days and beyond, those who bought property before March of 2006 will likely see positive results from their purchases.  Anyone buying between 2007 and 2011 more than likely will face negative equity.