UK House Prices Fall at Fastest Rate in Twelve Years

27 November 2007

LONDON: Seen by some as the harbinger of national recession, UK house prices have already declined 0.2% this month, doubling October's 0.1% rate of decline. Although not an official statistic, the report from property consultancy Hometrack aligns with data from other sources.

Central London, where house prices recently reached Alice in Wonderland levels, recorded the greatest fall this month - 0.5%. Nationwide, new mortgage approvals in October fell to 44,105 , the lowest since records began a decade ago.

Comments Hometrack director of research Richard Donnell: "Media focus on the fallout from the credit squeeze, along with relatively high interest rates, is resulting in widespread caution among homeowners, the majority of whom do not need to move and who are sitting back until the outlook becomes clearer."

And although house sales traditionally slow in the pre-holiday period, Hometrack's November figures show new buyers down by 9.1% in a month, while homes coming to market fell by 2.9%.

Data sourced from The Times (UK); additional content by WARC staff