Hometrack: UK house prices down 0.3%

Monday, 28 January 2008 12:00 AM

The average price of a property in the UK is expected to fall by 0.3 per cent over the course of January, according to the latest research from Hometrack.

This is the same fall as December, and the fourth consecutive monthly decline in the market.

However, the falls were localised to specific areas.

While estate agents in 30 per cent of the country were reporting a fall in prices during December, this had fallen to 23 per cent in January.

The monthly fall has led annual growth to shrink to just 2.4 per cent - the lowest level since June 2006.

Prices are, however, being supported by a shortage of supply.

Hometrack finds supply of properties coming onto the market will fall by 4.6 per cent during January - with a decline of ten per cent recorded over the previous six months.

It now takes 8.5 weeks to sell a house - the longest period since Hometrack began collecting the data in 2001.

The research also illustrates sustained demand in the market.

"Despite lower levels of market activity and weak confidence among buyers, demand for housing still exits 'at a price'. While underlying prices are posting small falls, asking prices are under the greatest pressure," Hometrack said in a statement.

Some 93.5 per cent of properties will achieve their asking price in January - down from an average of 96 per cent a year ago.

"Looking ahead, it is the broader economic outlook that is likely to remain the greatest influence on the market in the short term," continued the Hometrack statement.

Howard Archer, chief Uk economist at Global Insight, said: "The Hometrack housing market survey for January adds to mounting evidence that the housing market is slowing markedly and is set to continue to do so.

"Furthermore, other elements of the Hometrack survey pointed to further house price weakness ahead."

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