8.8 Decline on House Prices
July’s monthly report from the Halifax shows that house prices are continuing to drop. They have said that prices have fallen another 1.7 in the last month, dropping the annual decline rate from 6.1 to 8.8.
Halifax has calculated that on average a house in the UK is now worth £177,351. This figure takes the prices back to 2006.
The bank said that due to demands from mortgage payments, high prices and strain on the household finances.
In June Halifax predicted a 9 fall in house prices however as the figure has all ready dropped to 8.8 they may have under estimated.
Approvals for mortgages are down by 69 within the last year and predictions indicate that within the next year period this could drop another 20.
The credit rating agency Standards and Poor’s (S&P) have suggested that the recent fall of this size may push around 1.7 million households into negative equity whereby the size of the borrower’s mortgages debt exceeds the value of their property.
News brought to you by www.insuremylet.co.uk
August 08th 2008
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