House prices hit five-year low
House prices have dropped back to the same average level as in April 2004, according to the Halifax.
The lender has reported prices fell 1.7 per cent in April, taking the average price of a UK home to £154,716 – a 17.7 per cent drop for the year.
Its figures suggest the rate of decline may be slowing, having fallen from 1.9 per cent in March, and 2.3 per cent in February. But Halifax housing economist Martin Ellis warned prices are likely to continue to fall.
‘Rising unemployment, low consumer confidence and the reduced availability of credit are all expected to exert downward pressure on the housing market over the next few months,’ he said.
Halifax’s index is the most negative of latest batch of reports. Nationwide put the decline at 0.4 per cent for April, Hometrack’s index of prices in England and Wales goes for 0.3 per cent, and the latest Land Registry figures, which cover prices in England and Wales during March, show a 0.4 per cent fall.
Michael White, chief executive of online mortgage adviser Email Mortgages.com, said: ‘House prices are unlikely to do anything but fall in 2009 unless the wider economic issues can be addressed and, importantly, the lending community starts to meet its commitment to increase lending especially at higher loan-to-value levels.’
