UK House Prices Drop Four Months Running
UK house prices fell 0.9 per cent during the month of October, completing a four month stretch of lower value within the market. Hometrack, a property data company, released figures also indicating that during the last 12 months prices have fallen 0.1 per cent in England and Wales, citing the first year to year fall since January.
Demand has also declined four months running as the number of new buyers registering with real estate agents dropped by 2 per cent during October. Hometrack’s research director, Richard Donnell, commented about a developing trend in the housing market, saying: ''The mismatch between faltering demand and increasing supply looks set to continue, while the re-pricing process is likely to be drawn out into the first half of 2011. ''A stand-off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they're willing to accept." The offset of supply and demand continues to give buyers an advantage in the market. The amount of time a property is available on the market also continues to increase, rising to almost 10 weeks. Donnell commented on decreasing prices, saying: ''Further price falls are inevitable in the run up to Christmas and are likely to continue into the first half of 2011.'' The Bank of England also remarked, saying mortgage approvals fell for the fifth month running as the activity level remained subdued.