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House prices continue to fall

House prices continue to fall

Category: Mortgages

Updated: 26/11/2010
First Published: 26/11/2010

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 It is now over 6 months old so the content may be out of date.

House prices in England and Wales dropped for the second month in a row in October, new figures have revealed.

The Land Registry for England and Wales' house price index shows that house prices fell by 0.8% month-on-month last month.

This is the largest drop since February 2009.

The average house price now stands at £165,505 - a fall of almost £1,200 from September's figure.

Annual house price growth stands at 3.4% - its fifth consecutive monthly drop.

"Data released this morning from the Land Registry provides further evidence of a modest slowdown in the housing market," commented the Royal Institution of Chartered Surveyors' chief economist, Simon Rubinsohn.

"Prices have now fallen for two consecutive months according to this series although it is worth bearing in mind that they are still somewhat higher than where they were a year ago (for the whole of England and Wales)."

Although falling prices are good news for home buyers, many Britons are still finding it difficult to secure a mortgage, with October figures from the Council of Mortgage Lenders' showing that mortgage lending dropped to its lowest point in a decade in October.

House prices in the East of England fared the best month-on-month in October, rising by 1%, whilst Yorkshire and the Humber witnessed the biggest regional monthly fall of 1.8%.

In London, the annual change of 7.6% was the strongest growth out of all the regions in England and Wales.

The average house price in the capital now stands at £341,105.

"The latest numbers do show significant regional variation and the likelihood is the divergence in pricing between different parts of the country will become more marked over the coming year as public spending cuts begin to bite," said Rubinsohn.

Tempted buyers can kick-start their mid-winter bargain hunt by checking the mortgage Best Buy tables.

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