Previous UK House Prices Forecasts and Predictions in the UK from Mortgagesorter at 13 June 2008

House Price Forecasts and Predictions in the UK at 13 June 2008

UK House Prices Situation: House prices down by 2.4% in May

UK House Prices Forecast: Falls likely to be close to 10% by end 2008

Prices Down 2.4% in May - Latest Halifax Figures

New figures from the Halifax show that house prices fell by 2.4% in May - bringing the average house price a total of 3.8% lower than this time last year.

The Halifax figures come one week after Nationwide posted an almost identical 2.5% fall in May in its latest house price index. Halifax chief economist Martin Ellis said that house prices were falling as a result of "the rapid rise in house prices in the last few years, a squeeze on spending power and the reduction in credit availability."

It was these factors combined, he said, that had "curbed housing demand".

Ellis also noted that "sharp increases in both fuel (9%) and food prices (7%) over the last year have helped reduce the discretionary income available to households".

Land Registry Confirms April House Price Fall

The Land Registry has also just published its latest set of house price statistics. The Land Registry's index, which includes all completed property sales - not just sales agreed with mortgages - found that the average house price declined by 0.2% in April, bringing the yearly average change to April down to 2.7%.

While these figures are considerably more positive than those of the Halifax and Nationwide, in reality this is mostly due to the greater lag in the Land Registry's data and the fact they report one month behind most other indices.

The Land Registry's regional figures show how market conditions have affected different areas of the country (annual figures in brackets):

· South East: 0.5% (4.3%)
· North East: 0.4% (2.4%)
· South West: 0.2% (2.7%)
· East: 0.2% (3.4%)
· North West: 0.1% (2.9%)
· Yorkshire & The Humber: -0.4% (2.9%)
· London: -0.5% (6.8%)
· East Midlands: -0.7% (-0.9%)
· Wales: -1.0% (-1.4%)
· West Midlands: -1.2% (-0.1%)

Most noticeable is that despite experiencing falls for several months, London prices are still considerably up on one year ago. Conversely, Wales experienced the greatest annual fall in the year to April.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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