House prices falling at record rate

12 April 2012

The annual rate at which house prices are falling continued to accelerate during September to hit a new record of 5.1%, Government figures show.

The fall left the average property in the UK costing £208,583, nearly £12,000 less than a year ago and the lowest level since March 2007.

But homes lost only 0.1% of their value during September itself, well down on August's drop of 2.7%.

The figures came as the Royal Institution of Chartered Surveyors said estate agents sold an average of just 10.9 properties each during the three months to the end of October, dropping to only six homes in London.

Around 81.8% more chartered surveyors reported seeing price falls than those who saw price rises.

But on a brighter note, a balance of 20% of those questioned said they thought sales levels would increase during the coming three months.

House prices are now falling in all regions of the country on an annual basis, with Northern Ireland seeing the biggest drop of 15.8%, followed by the East Midlands and West Midlands at 7% and 6.8% respectively, according to the Communities and Local Government department (CLG).

Scotland has seen the lowest level of house price falls, with properties losing just 0.8% of their value during the past year.

The annual rate at which house prices are dropping eased in three of the UK's regions during the month, although it accelerated in the other nine.

The figures also showed that while the average cost of a terrace house fell by 1.3% during September and the price of semi-detached homes dropped by 0.7%, there was a 1% increase in detached house prices, while prices for flats and bungalows rose by 0.6% and 0.7% respectively.

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