In the news today it seems Homeowners are starting to wage war against one another with aggressive price cuts. This is good news for buyers, but it is a clear indication that times are getting harder and the property market is continuing on a downward spiral.

The hardest hit areas for price drops are the East Midlands with prices £11,000 less than a year ago. This is in contrast with the West Midlands where prices have only dropped by £9,600.

Another interesting point in the news today is that flats are being hit harder than houses with regards to house prices. Apparently, flats prices are down 4 percent in the last month where as detached houses are only 1.8% lower. This I suspect could be down to the lack of mortgages available to people with small deposits and they are the people who probably tend to buy the smaller properties such as flats. Where as the detached houses are bought by families who are not first time buyers or maybe even second time buyers and probably have larger deposits.

However, it seems the premium market homeowners in London are still resisting the temptation to be more flexible with their prices, which is probably because proportionately speaking they have a lot more to loose and still feel the London market is immune to the current conditions.

So all in all it is pretty bleak times and will probably be this way for quite some time to come. Hopefully next time I will have some better news, but I certainly won’t be betting my mortgage on it.

Related posts:

1. Why is the house price crash so bad?
2. UK Property News July 15 2008
3. UK Property News July 02 2008
4. Home Sales Lowest Since 1978
5. Property sales continue to plummet