According to recent government figures average house prices fell by 0.5 per cent in the 3 months leading up to the end of July, says the Guardian.
Compared to the 3 months leading to April this year, which saw the housing market drop by 1.3 per cent, the latest figures at least revealed a slowdown in price falls. According to the local government, there was a slight increase in the average property cost coming in at just over £217,000.
With the recent threshold in Stamp Duty tax rising to £175,000, first-time buyers should be finding the market much more affordable as homes were 1.6 per cent cheaper than July of 2007. Of course without a respectable deposit and good credit obtaining a mortgage in Britain today is still a challenge.
Despite the “buyer’s market” it can be difficult to step on the property ladder for most would be homeowners.
Chief UK economist at Global Insight, Howard Archer said, “Very negative housing market sentiment heightens the risk that house prices will continue to fall sharply for some time to come. In addition, unemployment is now rising at an accelerating rate, which increases the likelihood that people will have to sell their house for ‘distressed’ reasons. This would lead to more houses coming on to the market and would be liable to depress prices.”
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