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Year-on-year fall in house prices

1st March 2011 | back to article listings BACK    print this article PRINT

The average cost of a house in England and Wales fell 0.9% year-on-year to 163,177 in January, down for the first time since October 2009, according to new figures released by the Land Registry.

The year-on-year decline was attributed to a lack of demand from prospective buyers.

However, the figure was up 0.2% from December, recording the first rise in five months.

Paul Diggle, property economist at Capital Economics, said: "The small gain in house prices in January is unlikely to signal an end to the weakening trend in house prices.

"Indeed, if our economic forecasts are correct, the downward pressures on house prices are only set to build through 2011."

Continuing uncertainty in the property market and the wider economy forced potential buyers to delay purchases.

Raising mortgage finance was another problem faced by buyers.

House sales dropped 6% from October to reach 54,012 in November - the latest month for which figures are available.

This is the lowest figure recorded since May 2010.

Copyright Press Association 2011

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