Land Registry reports 10% annual fall in house prices

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by Lin Freestone

The latest figures from the Land Registry indicate that annual house prices in England and Wales fell by 10.1%, in October 2008.

The average cost of a home fell by 1.5% to £165,529 during the month, taking another £2,500 off the value.

This was the fourteenth consecutive monthly fall, and the lowest recorded since the middle of 2006.

The Land Registry’s figures are based on the actual price paid for the property when it was sold. Other surveys conducted by building societies base their information on mortgage approvals. Using this measure, the Nationwide revealed that house prices fell by 14.6% over the past year.

However, Nationwide has reported that there was a slowing down in the decline in the property market in November. Prices fell by just 0.4% during the month, comparing very favourably with the 1.3% decline recorded in October.

The November figures also show a slowing from the 14.6% October house price fall to 13.9%.

Only 54,488 properties were sold each month between May and August. During the same period in 2007, there was an average of 118,165 transactions a month, more than twice as many.

Further falls are expected as the economic downturn continues. Economists warn that the affect of the recession, the increasing difficulty for lenders to obtain a mortgage, rising unemployment and non-payment of bonuses for those still with a job, will all impact on the housing market next year.