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UK house price show first year-on-year fall

1st November 2010

UK house price show first year-on-year fall

House prices in England and Wales dipped 0.1pc in October from a year earlier, giving the first year-on-year fall since January as a stand-off emerged between buyers and sellers.

 
Property values in England and Wales fell by 0.9% during October

A survey by Hometrack, the property data company, said house prices fell for the fourth month in a row during October as buyers continued to stay away from the market.

The company, which asks estate agents and surveyors to give achievable selling prices for different types of homes in every post code in England and Wales, said falls were recorded in 56pc of postcode districts, while just 0.1pc of areas saw a rise.

Richard Donnell, director of research at Hometrack, said: ''The mismatch between faltering demand and increasing supply looks set to continue, while the re-pricing process is likely to be drawn out into the first half of 2011.

''A stand-off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they're willing to accept."

The mismatch between supply and demand has given buyers the upper hand in price negotiations, with sellers achieving an average of just 92.7pc of their asking price, the lowest level for more than a year.

The amount of time a property is on the market before it sells also continued to increase, rising to 9.6 weeks – the highest level since May 2009.

Property values in England and Wales fell by 0.9pc during the month, the biggest drop since January 2009, to leave the average home costing £156,200.

Source:  Telegraph 1/11/10