» Property prices drop further

UK's average property price plummets

Article Published: 6th November 2008

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With the news that property prices have nose dived by 15 per cent in the year since January, it can only be good news for the mortgage industry that the Bank of England has lowered its base rate by 1.5 per cent to 3 per cent.

It could be a good time for first time buyers, who will also want to make the most of the promise of cheaper rates, as more of the UK’s housing stock will fall below the £175,000 value required for stamp duty revenue to the government of 1 per cent.

Since the demise of the 100/110 per cent loan to value mortgages during the onset of the credit crunch, first time buyers have had to dig deep to secure a deposit which in most cases is nearer 10 per cent. The average property price in the UK is now £168,176 compared to £197,698 in October 2007.

The chief economist from Halifax, Britain’s biggest mortgage lender said: “Housing market conditions remain challenging in the face of the significant pressures on householders’ incomes and the reduction in the availability of mortgage finance since last summer. Prices are falling and they are falling at a faster pace than we’ve seen before.”