‘House prices in UK show more resilience than other economies’
Robert Gardner, chief economist for Nationwide, said prices in UK had fallen by more than 10 per cent since 2007.
He said weaker price data was not surprising given the lack of growth in UK gross domestic product.
Mr Gardner added: “The UK economy has contracted by 1.4 per cent in the past nine months and is now 4.5 percentage points smaller than it was in the first quarter of 2008.
“Against this difficult economic backdrop, it could be argued that UK house prices have shown resilience. While prices are currently 13 per cent below their 2007 peak, this is less than the declines seen in a number of other economies that have experienced similar or more robust economic recoveries.”
The data showed prices fell by 0.7 per cent in July to an average of £164,389. However the drop was nearly 15 per cent in the Netherlands, nearly 20 per cent in the US and 25 per cent in Spain for the same period.
The drop in UK prices was also broadly reflected by the Halifax House Price Index, which showed that prices were 0.6 per cent lower in the same period.
Andrew Dawson, director of Cornwall-based Coast To Coast Financial Planning Services, said: “I have one client who has had a house on the market for the past three years and has only had three viewings.
“A lot of the problems in the market are down to unrealistic price expectations and estate agents being too scared to discuss this with sellers.”