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Hometrack: House prices down 0.1pc as pressure on incomes grows

House prices fell last month and will continue to drop for the remainder of the year, according to the latest Hometrack report.

The property analyst said the average home saw a drop of 0.1 per cent last month as pressure on household incomes increased.

The number of new buyers registering with estate agents declined by 1.2 per cent in August, compared to 1.1 growth growth in July amid weakening demand for new properties.

Hometrack also found that the percentage of properties being sold for the asking price declined from 92.7 per cent in July to 92.5 per cent in August, while sales agreed dropped by 3.6 per cent.

The time properties remained on the market rose 9.5 weeks last month from 9.4 weeks in July.

Richard Donnell, director of research at Hometrack, said a seasonal drop in the August figures for buyers is to be expected but added ‘there is no doubt that pressures on household incomes are building and recent survey evidence suggests consumer confidence remains weak’.

He added: ‘The time taken to sell a property, is a lead indicator in Hometrack's monthly housing survey and provides a true insight into the relative health of the housing market. ‘For 33 per cent of the country, this figure now stands at over three months, with the gap between London and the north becoming increasingly wider.’

According to Hometrack, price changes in the capital have remained positive in each of the last six months, while all other regions have experienced either falling or static prices.

‘Looking ahead to the rest of the year there are signs that the balance between supply and demand is starting to shift in direction, primarily off weaker growth in demand for housing,’ said Donnell.

Source : This is Money.co.uk
www.thisismoney.co.uk/money/news/article-2031133/Hometrack-House-prices-0-1pc-pressure-incomes-grows.html

29 August 2011
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