House prices are nearly 5% less than they were a year ago

Posted in 'Neighbourhood' by Richard Catlin

01 October 2008

The latest house price data released by HM Land Registry shows that average prices fell by 4.6% in the year to the end of August, with a massive 1.9% drop in the last month alone - indicating that the decline may be accelerating.

The average cost of a home across the whole of the UK now stands at £174,500.

The extent to which property prices fell differs across the country. Even London didn’t escape this time - seeing a 2.4% drop in August and a 3.2% drop over the last 12 months.

Whilst these figures may seem low compared to recent headlines, they are based on actual completed sales values, rather than mortgage offers, and are a more reliable guide to regional differences in prices.

Variations from county to county are also quite high. The change over the quarter from June to September shows that Derbyshire has seen the biggest drop in asking prices, with a reduction of 12.8%, contrasting with double-digit decreases in four other counties.

The low number of house sale transactions taking place right now has led the Council of Mortgage Lenders (CML) to admit that it can no longer forecast market trends The predictions it made earlier this year are likely to have been on the conservative side.

With lenders further tightening their lending conditions it seems unlikely that the gradual price slide will be arrested anytime soon. If you are having trouble getting a mortgage in the current tight market, try this specialist broker.

You can check the latest HM Land Registry data for house prices in your area using our free Neighbourhood Search Service. You’ll be able to check how house prices are changing, according to the type of property and what the current average price is.

Check house prices in any area of the UK for free now.