Chesterton Humberts House Price Poll of Polls Shows House Price Decline Slowing Markedly

    LONDON, ENGLAND, May 16, 2009 /24-7PressRelease/ -- UK house price decline is slowing markedly, according to the latest Chesterton Humberts House Price Poll of Polls.

Although prices are still decreasing, the average price of a residential property in England and Wales fell by only GBP1,575 in April, significantly less than the six month average fall of GBP2,649.

The average residential property price for April was GBP162,601, a decrease of 1% month on month from the upwardly revised level of GBP164,176 in March.

House prices are now at their lowest level since July 2004.

Monthly house price changes have recently become more volatile. This is due to the low volume of sales combined with the slowing fall in prices, resulting in conflicting reports of swings in house prices.

Across all local authorities in England and Wales, 88% have now experienced year on year falls in excess of 10%.

The largest year on year fall was in the North West where prices have declined by 19.1%. The shallowest fall has been in Scotland, with prices down 10.5% on the previous year.

Prices in London are 16.4% below the peak in February 2008, with the average house price at GBP295,832.

Flat prices have fallen furthest, by 19.1% over the year to April 2009. Detached houses have fallen least, at 16.0% year on year.

Robert Bartlett, Chesterton Humberts CEO, comments:

"The revised HIP legislation has led to a predictable dwindling stock level in London, which is 20% down on last year and falling at an alarming rate. Our agents are reporting multiple bids above asking prices on many properties and in Kensington, we have had three new offers on a property due to exchange yesterday with another purchaser.

"Purchasers who have been sitting on the sidelines in rental properties are increasingly desperate to take advantage of historically low interest rates and they are competing against euro buyers who are concerned that the value of the euro will soon be falling against the pound."

"While it may still be a buyer's market in the country, it has become a seller's market in the higher value areas of London. However, even within the country offices we are now seeing a marked increase in the number of offers being made and more houses are being sold. Across the board we have witnessed a huge increase in our pipeline of forward business."

Douglas McWilliams, Chief Executive of CEBR, comments:

"While the pace of house price declines is slowing markedly across the country, lending activity is also picking up gradually. The number of loans for house purchases rose to just under 40,000 in March after a nineteen per cent increase in February.

"This is the first time since the credit crisis began where the number of mortgages approved has risen for two consecutive months. However, the effect of lower mortgage rates on the demand for loans is being partly off-set by higher unemployment and lower earnings, in particular as bonus payments have collapsed.

"As we approach the bottom of the housing market, prices will begin to fluctuate from month to month. Upswings in house price indices will lead some people into thinking that the market has already turned. But don't be fooled. House prices still have some way left to fall. Now is the time to start looking."

This report has been produced by Chesterton Humberts and the centre for economics and business research (cebr).

With a network of 63 offices across the UK, including 27 in London, Chesterton Humberts is one of the UK's leading property consultancies with a full range of property services including residential sales and lettings, commercial agency and management, rural land management, professional advisory services, professional valuation and other surveying services. The company also has a significant international presence with offices in St Tropez, Gibraltar, Lake Como, Singapore, Australia and Abu Dhabi.

CEBR is an independent economics and business research consultancy established in 1993 providing forecasts and advice to City institutions, government departments, local authorities and numerous blue chip companies throughout Europe. The contributors to this report are economists Charles Davis and Benjamin Williamson.

For more information, please contact: Nicky Preston at BlueIce Communications - Tel: +44 (0) 20 7937 7537 or Email: [email protected]

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