The latest survey of UK residential property has shown house prices are now 6.3 per cent lower than they were in June last year. Nationwide’s house price index revealed prices are also 7.3 per cent lower than they were at an October 2007 peak.
However, the firm said the pace of falls had slowed while they remained four per cent higher than they were two years ago. Only Scotland has avoided an annual house price decline, the poll showed. Nationwide chief economist Fionnuala Earley said:
“The price of a typical house is now £172,415. This is over £13,500 less than it would have cost at the top of the market and over £11,500 less than this time last year.
“However, the strength of house price growth up until last year mean prices are still four per cent higher than two years ago and nine per cent higher than three years ago.”
She added the amount of sales was a “key driver of house prices” saying the number of purchase approvals per month is now at an historic low. The statistics show first-time buyers are still accounting for the same share of the market, but the number of movers buying new houses is in decline.
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