FT house price index records 2.2% annual decline
The FT House Price Index for August shows a 1.3% fall in the average price of a home in England and Wales.
The decline has now entered its sixth successive month, with Wales seeing the sharpest average fall in August, at 3.8%.
While the downturn was the most marked since October 1992, the research (which is compiled by Acadametrics) shows that the cost of the average home is only 2.2% down on August 2007, at £222,456.
According to the analysis, house prices peaked in February 2008, since when they have fallen by around 4% or £9,452, to £222,456.
Greater London, the South East and the North are the only areas not showing annual falls.
The chairman of Acadametrics, Dr Peter Williams, says that prices are now back to May 2007 levels and he believes this will not be creating a problem for the vast majority of households, adding that neither is it transforming the market in terms of affordability.
By comparison, Halifax figures show house prices falling by 1.8% in August, giving an annual decline of 12.7%.
Acadametrics explains that while all house price indices are currently negative, indices that are transaction based show a less negative picture of the market than those such as Halifax and Nationwide, which are mortgage offer based.
The firm points out that price indices reflect each firm’s activity within particular market segments.
Land Registry data is also transaction based and figures for August should be published next week.