Land Registry: House prices down 10%
House prices hang from the hinges
Friday, 28, Nov 2008 02:59
The Land Registry has reported double digit house price fall for the first time in the property slump.
The government agency - which often lags behind industry price indices as it is based on true sales data - showed the 14th consecutive drop in house prices.
Figures for October show prices were down 10.1 per cent on the year before and were 1.5 per cent down on September.
The average house in England and Wales is now worth £165,529 - the same as in summer 2006.
With the price slump, a slump was recorded in the number of deals going through.
Between May and August there were an average 54,488 deals a month - down to a new low.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said: "Once again, house price falls were distributed across all the regions in England and Wales.
"House prices in London fell by almost two per cent in October but, on an annual comparison, continue to hold up slightly better than all other regions - having fallen by 8.6 per cent since October 2007."
Mr Rubinsohn said the fall in deals going through was in part due to speculation surrounding the possibility of a stamp duty holiday in the summer.
"Subsequently, the lack of housing turnover is now being very visibly reflected in a drop in high street spending on consumer durables," he added.
"The collapse of MFI is indicative of this squeeze."
House price falls by property type
| Average prices by property type | October 2008 | October 2007 | Difference |
| Detached | £253,719 | £278,862 | -9.0% |
| Semi-detached | £154,748 | £172,917 | -10.5% |
| Terraced | £129,694 | £144,111 | -10.0% |
| Flat/maisonette | £154,491 | £174,319 | -11.4% |
| | | | |
| All | £165,529 | £184,214 | -10.1.0% |
Source: Land Registry 28/11/08