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House prices fell by 1.3 per cent in February, bringing them to their lowest level since March 2005, according to Chesterton Humberts’ CEBR House Price Poll of Polls.
The average house price in England and Scotland is now £165,727, down from 16.1 per cent year on year from February 2008, and falling £32,185 from its peak in January 2008.
Flats and terraces fared worst in the poll, with year on year declines of 17.6 per cent and 16.9 per cent. House prices fell in all regions of the UK in February 2009, with the exception of Scotland where prices were flat.
In London, prices decreased by £54,592 since their peak in February 2008, however the rate of fall is decreasing. From January to February prices declined just 0.8 per cent, the shallowest pace of fall since May 2008.
Robert Bartlett, CEO of Chesterton Humberts, said: “While the decline appears to be slowing, the continuing drop in house prices highlights the need for the government to do more to assist recovery in the property sector.
“The welcome news that Northern Rock will be increasing mortgage lending needs to be followed up with a wide range of fiscal measures including tax cuts and incentives for first-time buyers, similar to what has been implemented in the United States.
“Yesterday’s interest rate cut is unlikely to have any positive effect. We are seeing strong demand for property, with viewings and offers up substantially from last year but this will not translate into sales until the lending and tax issues are resolved.”
Across all local authorities in England and Wales, more than four in every five saw year on year falls in excess of ten per cent, according to the poll.
Douglas McWilliams, chief executive of the centre for economics and business research (CEBR), added: “Both the top and bottom ends of the market continue to be hit as access to finance affects all levels of buyers. The top 20 per cent of properties dropped by 1.7 per cent in February and the bottom 20 per cent fell by 2.0 per cent in February.
“In February, the Poll of Polls showed that £2,138 was wiped off the value of the average house. Prices in ten out of the 12 regions fell faster than they did in January, with the exception of Scotland where the prices stayed flat.” |
