Unsurprisingly the global economic downturn and double dip U.K. recession has had a negative effect on the nation’s property market. Last week mortgage lender Halifax described the U.K. housing market as continuing to ‘tread water’ and reported a price drop of 0.4 per cent for August whilst the Royal Institution of Chartered Surveyors also described the situation as ‘sluggish’.
According to data compiled by Rightmove Plc. average house prices fell in September for a third consecutive month.
Property prices in England and Wales dropped a further 0.6 per cent in September following Augusts’ 2.4 per cent decline. However, the report released by Britain’s largest property website also stated that compared to the same period in 2011 the average house value has risen to £234,858 – an increase of 0.7 per cent. Rightmove cited distracting events over the summer, like the Olympics, as the main reason for falling property prices.
In the statement released by Rightmove the company’s commercial director said; ‘Summer sellers have had some very stiff competition, not only from competing sellers chopping their prices but also from the Olympics extravaganza which has been more compelling for many than viewing property.’
Of the ten English and Welsh regions monitored by Rightmove eight experienced price drops in September. Unsurprisingly the capital was one of the two regions which didn’t post a decrease. Property values in London were 6.6 per cent higher in September 2012 than in September 2011 and increased 0.3 per cent from August.
Rightmove also analysed five years of nationwide house prices (going back to the 2007 Northern Rock Plc crisis) and discerned that circumstances had changed very little.
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