House prices slip again in January

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by Gill Montia

House prices in England and Wales slipped 0.2% in January, according to the LSL/Acadametrics index, with the annual rate of decline standing at 1.4% (December -0.9%).

At £218,992, the value of the typical home fell for the third consecutive month, dropping more than expected, given the normal seasonal slowdown.

LSL Property Services commercial director, David Brown, suggests that potential buyers are likely to be weighed down by concerns over the global economy and the eurozone.

Even so, mortgage lenders have shown “commendable confidence”, injecting almost 20% more finance into the market in December 2011 than a year earlier, and helping to boost transaction levels.

The market is also being buoyed by cash buyers, especially for high-value properties in the South-East.

As a result, prices in London have bucked the national trend by not falling in any of the last six months, and growing annually by 3%.