House prices drop fastest in past 25 years

Posted: 08 Dec 2008 11:51:42 GMT

Research from the Halifax has shown that house prices across the country fell faster in the past 12 months than they have done in since 1983, it has been reported.

The latest figures from the high street lender mean that, as a result of November's house price drop of 2.6 per cent, the annual fall in prices has reached a drop of 16.1 per cent.

Such a drop has meant a loss in cash value of over £30,000 to the average property in the past year, putting the typical value at just £163,605, the Halifax reports.

Liam Bailey, head of residential research at Knight Frank, commented on the figures, hinting that interest in the market may be buoyed by the results, but prices are likely to keep falling for the next couple of years regardless.

"This cut is unlikely to have any immediate effect on the housing market, although it may tempt some buyers to make a decision," he said.

"Prices will continue to fall into 2009. Much depends on whether the new rate is passed on to borrowers."

Homeowners hoping to sell their property now before prices fall further could achieve a higher price by selling online, as an online property listing could attract more buyers to a property than listing it with an estate agent.

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