Assetz data reveals 0.7% house price drop
UK house prices have fallen again in the third quarter of 2011 with a drop of 0.7 per cent in the past 12 months, research has claimed.
Figures from Assetz revealed the annualised average rate of growth for September stood at 0.9 per cent, although annualised growth rates for three and six months revealed a drop of 2.6 per cent and 0.3 per cent respectively.
Stuart Law, chief executive of Assetz, said: “Several of the indices reported sharp price falls in August which has had the effect of bringing down price growth in the third quarter.
“Nonetheless prices are down only 0.7 per cent year-on-year and up 1 per cent since January and we still expect to record positive growth for 2011. However there is a possibility that prices could fall back further given we are seeing a very stable market overall with small changes in either direction.
“Our previous prediction of 5 per cent growth this year is no longer tenable given the limited progress made in the first three quarters, due to the impact of the government’s austerity measures and the ongoing eurozone crisis.
“Unemployment, however, has not impacted on growth to the extent that was expected by many commentators as it remains at a low level.”
Scott Rawlings, director of mortgages for London-based Radcliffe & Newlands, said the drop in house prices has led to a steady increase in buy-to-let business in the past 12 months.
He added: “Buy-to-let investors are always looking to pay less than full asking price so the economic climate has helped them get the deals they are looking for.
“Investors will look at yield when buying and currently yields are strong so I expect a further increase in buy-to-let business well into next year.”