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House prices 'dropped 1% in June' | House prices 'dropped 1% in June' |
(9 minutes later) | |
House prices in England and Wales fell by 1% in June from May, according to figures from the Land Registry. | House prices in England and Wales fell by 1% in June from May, according to figures from the Land Registry. |
That drop meant that the annual rate of increase was 0.1%, the tenth consecutive month that the annual rate of growth has slowed. | That drop meant that the annual rate of increase was 0.1%, the tenth consecutive month that the annual rate of growth has slowed. |
The average price of a home in England and Wales slipped to £180,781. | The average price of a home in England and Wales slipped to £180,781. |
Despite the current slowdown, which has been caused by tougher lending demands, a social housing group predicted that house prices would rise 25% by 2013. | Despite the current slowdown, which has been caused by tougher lending demands, a social housing group predicted that house prices would rise 25% by 2013. |
Rising or falling? | Rising or falling? |
According to the National Housing Federation (NHF), average house prices in England were set to rise by 25% over the next five years because demand for housing would outstrip the construction of new homes. | According to the National Housing Federation (NHF), average house prices in England were set to rise by 25% over the next five years because demand for housing would outstrip the construction of new homes. |
People are living longer, they're delaying getting married and they're more likely to get divorced - meaning that we now have more households than ever David OrrNational Housing Federation | People are living longer, they're delaying getting married and they're more likely to get divorced - meaning that we now have more households than ever David OrrNational Housing Federation |
The NHF said that house prices in England would fall by 4.4% in 2008, and be 2.1% lower in 2009. | The NHF said that house prices in England would fall by 4.4% in 2008, and be 2.1% lower in 2009. |
However, it predicts that prices will have recovered by 2010 and would rise by more than 9% in 2012 and 2013. | However, it predicts that prices will have recovered by 2010 and would rise by more than 9% in 2012 and 2013. |
While there are questions about how accurate five-year forecasts can be, there is a general concern that new homes being built will not meet demand. | While there are questions about how accurate five-year forecasts can be, there is a general concern that new homes being built will not meet demand. |
"As soon as the economic outlook improves, house prices will resume their previous upward trajectory," said the Federation's chief executive David Orr. | "As soon as the economic outlook improves, house prices will resume their previous upward trajectory," said the Federation's chief executive David Orr. |
Market view | Market view |
In the meantime, analysts are trying to work out how fast and how far house prices will drop. | In the meantime, analysts are trying to work out how fast and how far house prices will drop. |
The housing market has been affected by the credit crunch | |
The Land Registry figures are based on prices at the completion of sales and therefore lag behind some of the other surveys which rely on mortgage data. | |
The figures show that during June the house price fall was particularly marked in London, which saw prices drop by 2.5% from May. | The figures show that during June the house price fall was particularly marked in London, which saw prices drop by 2.5% from May. |
It also found that sales volumes remained much lower across England and Wales than in the same month a year ago. | It also found that sales volumes remained much lower across England and Wales than in the same month a year ago. |
The North East of England was the only area to see a monthly rise in prices, up 4.1% in June and 3.1% for the year. That made the average house price in the region worth £133,508. | The North East of England was the only area to see a monthly rise in prices, up 4.1% in June and 3.1% for the year. That made the average house price in the region worth £133,508. |
The region with the biggest year-on-year fall was the West Midlands (down 2.3%), with the average cost of a home in the region at £149,375. | |
The most up-to-date figures from the Registry on the number of homes changing hands show that far fewer people are moving than last year. | |
The credit crunch has made it more difficult, especially for first-time buyers, to get a good mortgage deal. | |
The figures show that semi-detached homes in England and Wales fell in price by 0.6% in June 2008 compared with a year earlier. | |
Detached homes went up in price over the same period by 0.8%. |