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UK house prices fall by 2.6% in a year

UK house prices fall by 2.6% in a year

Category: Economy

Updated: 01/08/2012
First Published: 01/08/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The average house price has tumbled over the past year to £164,389, a fall of 2.6%.

This is the fourth decline in prices in five months, reflecting a fall of 0.7% during July. House prices are currently 13% below their 2007 peak, prior to impact of the economic crisis.

As well as the continuingly tough economic climate, the dip in house prices is believed to be due to a fall in economic output, a lack of building activity and bad weather over the past few months.

Robert Gardner, chief economist for Nationwide Building Society, which compiled the figures, said: "The weaker price trend observed in recent quarters is unsurprising, given the disappointing performance of the wider economy."

"Data released last week revealed that the UK recession intensified in the three months to July, with the economy contracting by 0.7% quarter on quarter."

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