Property price falls accelerate as demand drops backMonday, 31 October 2011 11:51
Growing concern among Britons over the country’s economic prospects is now having a direct impact on house prices, according to data from property analysts Hometrack.
Average prices fell by 0.2 per cent in October compared with falls of 0.1 per cent over each of the previous five months, while annual growth has slumped by 2.8 per cent, the report reveals.
There have been above average price falls in the West Midlands, with property values down 0.6 per cent, while the East Midlands and the North East have each witnessed drops of 0.4 per cent.
Even London property values have suffered, with prices remaining static in October following seven consecutive monthly increases, the figures reveal.
Hometrack said this turnaround in fortunes is important, as above average price rises in the capital have flattered the headline rate of growth over recent months.
A slowdown in the capital will impact the scale of price changes nationally in the months ahead, it added.
And while demand for housing fell for the third month in a row, supply in October rose by 1.3 per cent.
Director of research Richard Donnell said: “The balance between supply and demand is clearly shifting and points to an acceleration in price falls in the coming months.”