Hometrack: House prices fall seventh consecutive month

| January 27, 2011
Hometrack: House prices fall seventh consecutive month

According to housing intelligence group, Hometrack, house prices in England and Wales fell for the seventh consecutive month in January.

According to Hometrack, house prices fell by 0.5% on the month to £153,600.

On an annual basis meanwhile, house prices were 2.2% lower in January.

Hometrack believes that house prices will continue to fall, in light of the uncertainty regarding the economy and the Government’s spending cuts.

Richard Donnell, director of research at Hometrack, said prices will “remain under downward pressure” in the short term.

“Household budgets being squeezed by increased taxation will be stretched further if concerns over rising inflation translate into higher interest rates,” he added.

Meanwhile, the group is expecting the number of instructions to dwindle in the coming months as vendors are either forced to reduce their asking price or take their home off the market.

Other reports suggest the market is cooling. House sales continue to fall, as do mortgage approvals.

Yesterday, the British Bankers’ Association (BBA) revealed a further fall in the number of new mortgages approved by the major banks in December.

According to the BBA, the number of new mortgages approved in the month fell to 28,726, down from 29,696 in November – representing the lowest figure since January 2009.

Net mortgage lending rose by just £0.88 billion – the worst figure since June 1999.

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