House prices down in 11 of 12 UK regions
Monday, 09 Jun 2008 11:26
Northampton, East Midlands
House prices fell in 11 of the 12 UK regions during May, according to new research from Chesterton estate agents.
The East Midlands was the only region to experience a rise in prices during the month, recording a marginal increase of 0.1 per cent.
According to the organisation's poll of polls, average prices across England and Wales fell by 0.7 per cent in May and year on year house price growth declined further to 1.3 per cent.
As a result the average price of a residential property today is £193,183.
"Lending remains restricted and is causing the housing market to weaken considerably: eleven out twelve UK regions showed month on month house price falls in May," said Douglas McWilliams, chief executive of the Centre for Economics and Business Research (CEBR), which carried out the research for Chesterton.
"However, fundamental supply issues will prevent the UK housing market from experiencing decline as dramatic as that seen in the US and Spain."
According to
official statistics house prices in Spain have been undergoing a sharp correction for the previous 18 months.
Back in the UK, annual growth in house prices is higher in London than in all other regions over the year to May, however even here there is evidence of significant cooling.
However, prices continue to grow strongly in some London boroughs.
The fastest annual house price growth was recorded in Islington, where prices increased by 21 per cent over the year.
For the top 20 per cent of properties by value, there were four other local authorities which recorded annual price growth above ten per cent: Kensington and Chelsea, the City of Westminster, Camden and Southwark.
"Buyers are still out there and with softening prices they are keen to buy, but due to credit restrictions, some are finding it difficult to progress purchases," said Robert Bartlett, chief executive of Chesterton.
"Prices remain firm in several London boroughs but what is more noticeable is the fall in the number of sales transactions. Lettings demand remains very firm across London," he concluded.
Chris O'Toole