House prices fall across half the UK
Half of the UK's local authorities saw house prices fall last month, as the housing market continued to slowdown.
According to Chesterton’s latest House Price Poll of Polls, 87 of 170 local authorities (51 per cent) recording negative month-on-month house price growth in April.
On an annual basis, prices also fell in Northern Ireland, the East Midlands and Wales, according to the report, compiled by the Centre for Economics and Business Research (CEBR).
Northern Ireland suffered the greatest fall, with prices down by 4.6 per cent.
Detached houses suffered the biggest hit with a 1.1 per cent reduction in prices. Meanwhile, flats saw the strongest growth, rising in value by 4 per cent over the year.
The monthly market snapshot also showed that the value of properties in the bottom 20 per cent of the UK market fell by 0.2 per cent in April. This compared to a 0.5 per cent reduction in the value of the top 20 per cent.
CEBR chief executive Douglas McWilliams said: "Price falls are now happening across the country. Mortgage lenders, estate agents and surveyors – in fact, all areas of the market – are now telling the same story of decline.
"Prices are only holding up in Scotland and at the very top of the market, which is propped up by international demand helped by falls in sterling."
Robert Bartlett, chief executive of Chesterton, added: "Recent injections of liquidity into the banking system has yet to find its way to those seeking mortgages.
"Higher priced mortgage products and greater caution from the banks is now having a negative effect on house prices. This scenario is likely to remain whilst banks repair their balance sheets and until interest rates drop significantly.
"There are, however, great opportunities for cash rich buyers in all sections of the market which is reflected in the stronger growth rates in some areas of central London. Cash is king and those with a surplus are already snapping up property."
