House prices weaken January 29th, 2008

The housing market continues to weaken, with the average house price in December falling to £184,469 from £186,009 in December. In fact only three regions in England and Wales showed an increase, the largest being 2.2% in the North East.

A report from the Land Registry is the latest report to confirm the weakening. It shows that annual prices fell by 0.4% in December bringing the annual growth rate down to 6.7% from 8.1% in November. This news is supported by date from the two largest mortgage lenders, the Halifax and the Nationwide, who report annual growth of 5.2% and 4.8% respectively.

Coupled with the fact that mortgage approvals are at a three year low, there is growing pressure on the Bank of England to cut interest rates in February. Lower prices and interest rates should mean canny investors coul pick up a bargain or two in the coming months.