Poor performance in final quarter say National Homebuyers
Annual house price inflation in the final quarter of 2007 fell below the long-term average for only the second time since 2001, potentially leading to financial difficulties for many.
[UKPRwire, Mon Jan 28 2008] That is according to the latest figures from Halifax, which show that inflation slumped below the eight per cent average to just 5.2 per cent.
The smallest regional rise was in the East Midlands, where the average property gained just 0.6 per cent in the year.
Prices actually fell between quarter three and quarter four, dropping by 0.8 per cent.
The area to take the biggest hit in this way was central London, which saw prices fall by 6.3 per cent.
This was followed by the south-east (-2.3 per cent) and the East Midlands (-2.3 per cent).
"The slowdown in house price growth seen in the first three quarters of 2007 continued in the final three months of the year with prices slightly lower than in the preceding quarter," said Martin Ellis, Halifax chief economist.
"House prices for the UK as a whole are predicted to be flat during 2008, but there are likely to be regional variations… modest falls are predicted in northern England and the midlands," he added.
Falling prices could spell financial difficulties for many and may lead to a surge in people looking to make a fast property sale. Fast property sale expert Julian King says, "Many homeowners will be cautious that as prices continue to lose value in London, the rest of the UK will follow.
"Those predicting financial difficulty are advised to consider a quick sale of their property, as prices continue to fall.
"Homeowners who need a fast property sale may find that using an estate agent to sell their property may not afford them the timescales needed".
Mr King is a director of National Homebuyers, the UK's leading quick property sale company. The company offers to purchase any property in the UK, regardless of its condition or the vendor's reason for selling. The company also provides mortgage rescue solutions such as Sell and Rent Back.