UK House Prices Fall 2.4% In May

by Marie Cole on June 5, 2008

UK House Prices Fall 2.4%: The Halifax, Britain’s biggest mortgage lender as reported a 2.4 per cent fall in house prices in UK – May 2008.

UK House Prices Fall 2.4%: It said that the annual fall in prices was the biggest it had seen since 1993. If prices continued falling at this present rate since the start of the year, then prices will fall by 16 per cent over the course of 2008.

house prices falling

This fall represents a 3.8 per cent reduction in prices when compared with the same period last year. The average price of a home now stands at £184,111.

house prices uk

The Halifax’s survey echoed the results of the latest study from the Nationwide Building Society, which reported a 2.5 per cent, fall in property prices in May 2008.

Martin Ellis, Chief Economist at Halifax said,

“The decline in prices is caused by the difficulties created for potential house purchasers, by the rapid rise in the last few years, a squeeze on spending power and the reduction in credit availability.”

He also pointed out that average earnings rose by 4 per cent, in the year to March 2008, much less than fuel prices which rose 9 per cent and food prices which rose 7 per cent.

The latest data on house prices in the uk and the wider economy are undeniably alarming. Clearly the downward pressure on house prices coming from stretched buyer affordability and tight lending conditions is now beginning to bite hard.