House prices fall for sixth consecutive month

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by Kay Murchie

According to property information company, Hometrack, house prices fell during March for the sixth consecutive month.

Prices continued to decline in March, falling by 0.2% during the month, with 29% postcode districts experiencing a reduction in property prices.

Hometrack said the average cost of a home in England and Wales has risen by just 0.4% during the last 12 months to an average £174,100.

The biggest price falls during March were seen in the West Midlands, North and Greater London, with the average cost of a home falling by 0.3% in these regions. All other regions saw price falls of 0.2%, expect Wales, where the cost of property remained the same.

The news follows that from Nationwide Building Society who said property prices had fallen for a fifth consecutive month and prices have further to fall.

Many reports are showing property price falls as the market suffers from the credit squeeze and stretched affordability which has resulted in lenders tightening their lending criteria.

Hometrack reported a 4.6% increase in the amount of properties coming on to the market during the month, however, this increase was half the level seen in February.

The number of sales agreed rose by 8% in March, compared with a 20% increase during the previous month. However, the average time a home takes to sell remained unchanged at 8.5 weeks and sellers are getting just 93.5% of their asking price.

Richard Donnell of Hometrack said some bounce-back in market activity was inevitable after what has been a prolonged period of weak market activity. However the growth in demand over the last two months is only a third of the level seen in previous years so the spring market is likely to be a non event this year, concluded Mr Donnell.