House prices plunge as downturn gathers pace
House prices fell by a massive 2.5 per cent in March - a dramatic indication of how fast the market is deteriorating.
Issuing its latest monthly house price report, Halifax noted that the fall marked the steepest monthly decline since September 1992. It came well above city expectations of 0.5 per cent.
The figure means that the average British home has now risen in value over the past year by a mere 1.1 per cent, the slowest annual growth rate for 12 years.
Coming on the heels of 227 per cent property inflation over the past decade, many pundits are now voicing their belief that the market has entered the initial phase of a dramatic price correction.
Capital Economics and Global Insight are the latest such bodies to predict a double figure drop, but housing minister Caroline Flint has insisted that the market remains buoyant.
She told the BBC that market conditions are completely different to those witnessed in the crash of the 1990s, insisting that low unemployment and a robust economy will prop up the sector.
However, Nationwide has now reported five consecutive monthly falls in house prices and it is predicting that prices will continue to head south throughout 2008.
Published 8th April, 2008
© 2008 Estates IT Limited
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House prices fell by a massive 2.5 per cent in March - a dramatic indication of how fast the market is deteriorating.