House prices fall 1.57% in January

| February 20, 2008 | 0 Comments
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Latest figures from the financial website, Moneyextra.com, show a 1.14% year-on-year rise in average UK house prices in January.

The figure was down on December (+1.85%), putting the cost of the average home at £223,957.

Property values for first-time buyers were up 4.63% year-on-year during the month, however, the gain reflects past increases, rather than the current state of the market.

During January house price actually recorded a 1.57% fall across the whole market.

In the case of first-time buyers, the decline was greater, at 2.36% bringing the average first-time buyer property price to £185,551.

The average mortgage being sought by all homebuyers has fallen slightly over the past 12 months and was down 1.97% in January, to £135,051.

Mortgages taken out by first-time buyers have fallen by a much larger margin, down by 6.75% over the last 12 months, to £132,175.

Robin Amlôt, Senior Editor of Moneyextra.com, says, “December’s cut in base rate has yet to be reflected in the housing market with many lenders dragging their feet in reducing their mortgage rates before Christmas.”

Adding: “The Council of Mortgage Lenders claims that barely 40% of first-time buyers benefit from the current stamp duty land tax threshold. There’s talk that Chancellor Alistair Darling may offer some kind of tax break for homebuyers to shore up the market.”

Mr Amlôt believes that February’s further rate cut is unlikely to have any real impact on the weakening housing market.


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