The average house price in the UK fell by 0.7% in October – or about £2,376. According to data from Halifax, Britain’s largest building society, the average price of a home has gone from £166,757 in September to £164,381 in October. It’s a smaller drop than the price fall of £6,000 in September.
The drop seems to have been fuelled by a decreasing confidence in the market by both the public and industry experts. One economist describes the UK property market as “not [having] got much going for it at the moment.”
Ed Stansfield, chief property economist at Capital Economics, says that declining house prices after last year’s boom should not be a surprise. “Not only is the market overvalued on most measures, but house price falls are entirely consistent with the drop in buyer enquires and mortgage approvals that we have seen in recent months,” he says. “They also square with reports that lenders have begun to tighten credit standards again.”
Source: Telegraph co.uk