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SELL YOUR HOME QUICKLYHousing slump intensifies – prices drop by 2.4%
The most recent statistics reveal that house prices have dropped lower than the levels recorded during the infamous property market crash of the 90’s. Indeed, experts are interpreting the latest developments as the beginnings of a housing recession in the UK, reports The Independent.
According to recent figures published by Halifax, the national house price index, house prices decreased by 2.4% in the month of May alone, by 6.3% over the past three months, and by 3.8% since the beginning of the year. To compound matters, the Bank of England has reiterated that interest rates will remain at 5% due to the growing threat of inflation.
The average price of a house in Britain now stands at £184,111 – which is £5,000 less than what the same house would have been worth one month ago. All together, house prices have fallen by as much as 10% since the market peaked last autumn.
Chief UK economist at Global Insight, Howard Archer, said, "The latest data on the housing market are undeniably alarming. Clearly, the downward pressure on house prices coming from stretched buyer affordability and tight lending conditions is now biting hard."
According to JP Morgan’s Malcolm Barr: "Our recently revised forecast for a 10 per cent fall in prices by the end of this year and 5 per cent next [year] obviously looks too low when prices have already fallen by 5.4 per cent over just three months."