UK
House Prices Situation: Falling steadily in most areas
UK
House Prices Forecast: Zero growth or falls nationwide
in 2008
Rightmove
Figures Bad News for Sellers
Leading
property website Rightmove this week published its latest
House Price Index, which is based on the asking prices
of property for sale through its website. Around 90% of
property for sale in England and Wales is advertised through
Rightmove - giving them a comprehensive view of the market.
Rightmove
reported an average 3.2% fall in asking prices across
England and Wales - up from a 0.7% fall in October. This
latest monthly fall reduced the average increase in prices
for the last year to just 4.8% - only slightly above inflation
and a marked reduction on last year's gains.
Some
regions faired better than others, with one area of England
even managing to record an increase in average prices.
Here's how the regions stacked up, from best to worst:
·
West Midlands: +1.7%
· East Midlands: -0.5%
· Yorkshire & Humberside: -1.3%
· North West: -2.3%
· Wales: -2.5%
· South West: -2.6%
· North: -2.9%
· East Anglia: -3.4%
· South East: -3.8%
· Greater London: -6.8%
Rightmove
believe that the extension of the HIPs scheme to all properties
from the 14th December played a significant role in the
depressed prices seen last month, aggravating the effects
of "tough market conditions". Previously HIPs
were only required for properties with 3 or more bedrooms.
In
the first week of December, Rightmove saw a 10% rise in
the number of properties with 2 or fewer bedrooms being
placed on the market - just before the HIPs requirement
was introduced for these properties. Rightmove estimate
that the 'HIP effect' has added 1.1% to the monthly fall
that would otherwise have been seen.
Mortgage
Lending Down Again
In
a further sign of slowing activity in the housing
market, the Council of Mortgage Lenders (CML)
reported that mortgage lending was down 8% in November
from October and was lower than the same period last year.
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