Eurozone woes dent property prices
House sales have fallen in the last month as the crisis in the eurozone begins to impact on lenders’ confidence.
According to figures from LSL Property Services, property transactions in October were down 6 per cent on last year as the market seized up. In London, house prices rose 2.5 per cent in the three months to October, but outside the capital prices have fallen by an average of 2.7 per cent since October 2010.
The biggest falls were seen in the north of England, where annual prices in the three months to October fell by 7.9 per cent, due to lenders’ fears about the impact public spending cuts will have on the region.
David Newnes, director of LSL Property Services, said the fall was not as bad as might have been expected: ‘It is testament to the resilience of the national market that the ongoing economic problems the nation faces have not caused property prices to fall further in the last 12 months. This shows that, where mortgage finance is made available, buyers still have a strong desire to step onto the ladder.’