More House Price Gloom as Market Flatlines

More House Price Gloom as Market Flatlines

16:14 PM, 13th September 2011, About 12 years ago

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"CLG have found a stagnant market"

The latest official statistics confirm the housing market is sluggish and is not showing any signs of a revival at any time soon.

The government’s Communities and Local Government statistics for July show that house prices fell 1.5 percent year on year and a nominal 0.3 percent from June.

The average house price is now £ 207,690.

Prices fell slower in Wales (-0.1%) than England (-1.5%) and Scotland (-1.8%).

London has the highest average house price (£347,271). The North East has the lowest at £133,163.

London was also the only region to show an annual house price increase (0.9%). The worst was West Midlands with a fall of 4.6%.

The Financial Services Authority has also released quarterly house market data for the three months ending June 30.

Overall, borrowing £37 billion remains at the level of the same period in 2010 , but 11% up on the first quarter of 2011.

Around 35,700 new mortgage arrears cases were reported in the quarter, which was little changed from the first three months of the year, but 4% lower than the same period last year.

The total number of accounts in arrears at the end of June was 1% down on the first quarter and 6% down on last year at 332,700.

Meanwhile, estate agents report a subdued housing market in August, blaming banks and building societies for not showing a willingness to lend and general economic concerns.

The average estate agent is making just one sale a week and has stock of 67 homes.

Most estate agents reported a drop in interest from buyers and sellers, reflected in less new instructions to put property on the market, said the Royal Institution of Chartered Surveyors (RICS).

Alan Collett, of RICS, said: “For the time being, our indicators suggest that demand for homes remain broadly steady, albeit at relatively low levels, despite the renewed bout of economic gloom.

“However, the risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available.”

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