Hometrack: House prices fall in July

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by Kay Mitchell

According to housing intelligence group, Hometrack, house prices in England and Wales fell for the first time in 15 months in July.

According to Hometrack, house prices fell by 0.1% in July and the company has warned that further falls are likely.

Commenting on the data, Hometrack’s director of research, Richard Donnell, said: “Further modest house price falls are inevitable over the second half of the year as the volume of homes for sale continues to rise and demand remains weak.

“It is hard to identify factors that will drive any marked increase in demand for housing in the coming months,” he added.

Hometrack believes public spending cuts have dented confidence, which has led to a fall in new buyer enquiries.

However, the decision by the coalition Government to scrap Home Information Packs (Hips) has resulted in a surge of properties being put up for sale but the lack of buyers will ultimately drive down house prices, according to many reports.