House prices fall slightly by 1.2% in April

June 9th, 2009 by admin · No Comments

According to the latest report published by Land registry in the house prices in have fallen again in the month of April. The fall in house prices in April however is quite small as compared with other months where the prices have fallen.

After seeing a small improvement in house price in March, April has once again seen a decline in house prices, according to land registry. This time around however the house prices have only fallen slightly. The total decline in house prices was only 0.3% which seems insignificant compared to decline in house prices in many other months during the period of recession.

The average fall in house price in an annual period still remains at just over 16%. According to the Land registry in UK, which keeps a record of all properties sold in the UK, the market price of an average home in the UK was £182,557 at the same time last year. The same home will now be valued at only £152,898 according to house price index of April 2009. According to property analysts although house prices have fallen it is quite important to note that the rate at which prices are falling has remained fairly consistent over the past few months.

In a more recent report on house price index, published by Nationwide building society, average house prices in UK could have risen by 1.2% in the month of May. The may increase in house prices will make it the second increase in 2a 3 month period.

The recent reports on the property market in UK offer a positive indication and show that the downturn in the property market may be coming to an end. However in spite of the positive reports, property sales are still slow this year. The main reasons for property sales have not picked up is due to difficulties in obtaining property finance. Lenders and property finance companies are still being cautious with their lending and may continue to do so in the months to follow.

In spite of the slight improvements on monthly property figures and reports, the total decline on an annual basis is still significant and may require many months of continuous improvements before it changes. The total number of properties sold in a 3 month period still remains at lower than 40% as compared to the same 3 month period last year. Nevertheless the recent growth in the property market seen in the last 3 months show signs of stabilisation of the property market in UK.

“Despite the predictions and positive reports on a monthly level, many property analysts expect that the property prices will decline by a further 10% towards the end of the year. While some property analysts believe the market has already reached its bottom and can only grow form here, others believe that the bottom has not yet been reached. Some regions like London have started to see a small rise in house prices but many other regions are yet to follow. According to the Land Registry, in London house prices have risen by 1.2% in the month of April.

On an annual basis, average house prices have fallen in almost all regions including the capital. The monthly figures will need to continue for many months before the annual decline can be covered. Although its early to predict a downturn in the property industry, it will be fair to say that the market has finally started to show signs of stabilisation and an overall improvement may not be as far away as we think.