According to some reports house prices have fallen for 8 consecutive months and the fastest for 16 years with Junes decrease in house prices falling by 0.9%. This is a smaller decline than the 2.5% drop in May, but it means that in comparison to the same time last year prices have fallen by a total of 6.3%. So the cost of an average home is now just over £172,000.

House prices are falling
As with most previous reports on house prices the drop in prices is being fuelled by less demand and is epitomised by the lack of mortgage approvals, with only 42,000 being accepted in May according to The Bank of England. This is an incredible plunge of over 60% on this time year ago. This suggests that if the volume of mortgage approvals continues the way it has been the circumstance are set to stay the same.

An interesting point identified in the news today is that house prices are still 4% higher than 2 years ago and 9% higher than 3 years ago. So for people who bought before this time they should be in good stead. However, as time goes by and the situation worsens more and more people are going to be affected and this could mean a major re-alignment in house prices.

Also it is apparent that even the mighty London property market isn’t even able to resist the grip of the credit crunch with its prices also falling. This, I suppose is to be expected due to the higher prices present in London and the tighter lending criteria being set by lenders making it more difficult for people to buy in London. However, London is not the worst City to be affected it seems Sheffield is the hardest hit with properties in the area falling by 17% between April and

Related posts:

1. UK Property News July 15 2008
2. UK Property News June 03 2008
3. Latest UK Property News
4. House Prices Continue to Fall
5. Home Sales Lowest Since 1978