House price falls start to level out

House price falls have begun to level out according to Communities and Local Government (CLG) research released today.

The UK house price index (HPI) statistics found first-time buyers were paying 15.4 per cent less for a property than in January 2008, with the average house price recorded in January standing at £195,724.

UK house prices fell by 3.9 per cent in the quarter ending January 2009, slowing in comparison to the fall of 5.2 per cent for the quarter ending October 2008.

The annual fall of house prices was 11.8 per cent in England, 10.4 per cent in Wales, 6.3 per cent in Scotland and 14.3 per cent in Northern Ireland. On average, UK house prices were 11.5 per cent lower than in January 2008.

Average house prices in January 2009 were £201,769 in England, £152,375 in Wales, £152,559 in Scotland and £193, 574 in Northern Ireland. The English region with the highest average house price in January remains London at £301,383 and the lowest was in the north-east at £135,589.

David Smith, senior partner at Dreweatt Neate estate agents, said: "The CLG figures are less representative of what is happening on the ground than other indices, such as those provided by the Halifax and Nationwide, which show larger declines over the past year.

"11.5 per cent over the year to January is optimistic at best for the market as a whole, although certain areas and properties will always buck the trend and hold their value better. I am concerned that sellers could look at these figures and price their properties accordingly, which will result in a major disconnect with buyers."