UK house prices fall for fifth straight month, further drops ahead - Hometrack
Friday, November 19, 2004 11:02:10 AM
afxpress.com
LONDON (AFX) - House prices in the UK have fallen for the fifth consecutive month and are set to drop further in the months ahead, according to Hometrack, the property website
In its monthly survey of the housing market, Hometrack found that prices fell 0.6 pct for the second consecutive month in November
It added that the average property price now stands at 164,800 stg, down from the 167,700 stg peak achieved in June. Further house price falls are inevitable over the coming months given that the excess supply of unsold properties is increasing, it said
John Wriglesworth, Hometrack's housing economist, said this month's price fall confirms "beyond doubt" that the housing boom is "well and truly over"
"With house prices now over 100 pct higher than five years ago, values have reached their peak given current levels of household income and interest rates," he added
Despite the current weakness in the market, Hometrack expects house prices to stabilise next year and recover in the second half
Household incomes, it noted, are rising 5 pct a year, while unemployment is at a 20 year low and interest rates are likely to remain stable
"All this points to a recovery of buyer confidence next year," said Wriglesworth |
