House price decline speeds up

| November 28, 2011
House price decline speeds up

House prices fell at a faster rate in October than they did in the previous month, according to Land Registry figures, with the average house price dropping to £160,000.

The house price index fell 3.2 per cent in October, compared with a 2.6 per cent fall in September.

Although house prices in London fell by 1.6 per cent in October, it was the only region where prices for the year as a whole showed an increase.

In contrast, the North West and North East regions suffered year-on-year falls of more than 7%, with the rate of decline accelerating in October by 2.9% and 1.8% respectively, compared with the previous month.

The figures represent the tenth consecutive month of declining property values and analysts predict that the uncertain economic outlook and pressure on incomes, means that downward trend will continue.

However, new research by Halifax shows a different picture over the longer term, with house prices rising by an average of 96% across 20 local authority districts in England and Wales between 2000 and 2010.

The districts where prices grew the most were the most popular with buyers who were relocating within England and Wales.

Home owners in the 20 local authority districts with the greatest net internal migration saw the average value of their properties grow 101 per cent, from £94,548 in 2000 to £189,641 in 2010, compared with a 79 per cent increase in the 20 areas where there was the least internal migration.

In the East Riding of Yorkshire, where 33,700 more people moved into the district than moved out, prices rose by 127%.

Eighteen of the 20 Local Authority Districts with the largest net fall in internal migration were in major cities such as Birmingham and Leicester.

Overall, house prices rose by an average of 96% across all the Local Authority Districts surveyed.

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