House prices fall for sixth consecutive month

According to a recent report house prices in the UK have fallen for the sixth consecutive month, which has resulted in house price growth stalling in the month of March.

Over the past year the average house price in England and Wales has increased by only0.4% which puts the average house price at just £174,100 according to figures from Hometrack.

The data goes on to show that nearly 30% of postcode areas in England and Wales saw a reduction in house prices over the course of March, with house prices falling by 0.2% over the course of the month.

A recent report shows that most house price indexes are showing reductions in house prices, with the global credit crunch and lack of affordability affecting the housing market.

Many lenders have had to raise their interest rates on mortgages, and many others have tightened their lending criteria to the point where many consumers are unable to get finance to purchase a property.

According to industry officials the number of prospective buyers registering with estate agents as well as the number of homeowners putting their properties up for sale slid in March compared to February.

There was an 8% increase in the number of sales agreed in March, but this was compared to a 20% rise in the number of sales agreed in February.

One Hometrack official said: ‘Some bounce-back in market activity was inevitable after what has been a prolonged period of weak market activity. However the growth in demand over the last two months is only a third of the level seen in previous years so the spring market is likely to be a non event this year. Continued uncertainty in the financial markets, affordability pressures and weak buyer confidence are all likely to suppress levels of market activity in the months ahead with pricing levels remaining under pressure.’