Money News
1st August 2008
House prices down for fourth month in a row
House prices fell for a fourth consecutive month during July, as conditions in the property market continued to worsen.
Figures from Halifax show that house prices fell by 1.7 per cent over the course of a month.
The decline followed falls of 1.9 per cent in June and 2.5 per cent in May and means that the average home is now worth £177,351 - 8.8 per cent less than it was 12 months ago.
Suren Turi, an economist at Halifax, said the falls are principally due to continued lending constraints being experienced by mortgage providers as well as the soaring cost of living.
She commented: "Pressure on householders' income, together with a very significant reduction in mortgage finance due to the global financial markets crisis, is constraining potential house buyers' ability to enter the market.
"This is resulting in both lower prices and activity levels."
Ms Turi's comments were echoed by Global Insight economist Howard Archer who cited stretched buyer affordability and tight lending conditions as the factors behind the ongoing downturn.
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