House prices fall in August

Posted: 28 Aug 2008 14:34:13 GMT

            Property News - House prices fall in August

The cost of the average British house fell by 1.9 per cent in August bringing the total annual decline to 10.5 per cent over the last 12 months, the first time it has fallen into double digits since 1990.

That is according to the latest statistics from Nationwide, which revealed that the average price of a house now stands at £164,654, down from £169,316 in July.

While the monthly decline was larger in August than last month, when it stood at 1.5 per cent, Nationwide's chief economist Fionnuala Earley pointed to the fact that the less volatile three month measure eased to 4.5 per cent in August, from 4.6 per cent in July.

"Recent activity levels in the housing market have been very subdued. House builders in particular have been reporting significant reductions in site visits and reservations of new properties since this time last year," she said.

The report also revealed that recent mortgage rate reductions are encouraging consumers to take on fixed-rate deals. Indeed, 44 per cent of borrowers said they would prefer a fixed mortgage, while 43 per cent said they are more likely to consider a long-term loan than they were this time last year.

Earlier this week, housebuilders Taylor Wimpey and Bovis reported that falling demand will lead to declines in profits and job cuts.

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