This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11846182
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| House prices: Continued decline, says Land Registry | House prices: Continued decline, says Land Registry |
| (about 2 hours later) | |
| House prices continued to slide in October in England and Wales, according to the latest statistics from the Land Registry. | House prices continued to slide in October in England and Wales, according to the latest statistics from the Land Registry. |
| Prices fell by 0.8% compared with the previous month, leaving the average property valued at £165,505, it said. | Prices fell by 0.8% compared with the previous month, leaving the average property valued at £165,505, it said. |
| Only London and the East of England registered property price rises compared with September. | Only London and the East of England registered property price rises compared with September. |
| The biggest fall was in Yorkshire and the Humber, where a 1.8% drop pushed down the average price to £126,292. | The biggest fall was in Yorkshire and the Humber, where a 1.8% drop pushed down the average price to £126,292. |
| This was the second month in a row that month-on-month prices had dipped into negative territory on average across England and Wales, the Land Registry's figures show. | This was the second month in a row that month-on-month prices had dipped into negative territory on average across England and Wales, the Land Registry's figures show. |
| Prices remained 3.4% lower than a year earlier, but this figure has now shrunk for five consecutive months. | Prices remained 3.4% lower than a year earlier, but this figure has now shrunk for five consecutive months. |
| Trend? | |
| Recent house price surveys have shown the effect of a lack of demand among buyers unable to secure a mortgage, as well as more properties coming onto the market. | Recent house price surveys have shown the effect of a lack of demand among buyers unable to secure a mortgage, as well as more properties coming onto the market. |
| This has led to a stagnation, or slight dip, in prices in recent months. | This has led to a stagnation, or slight dip, in prices in recent months. |
| Paul Diggle, property economist at Capital Economics, said: "The second consecutive monthly drop in the Land Registry measure of house prices is further evidence that the devaluation is becoming more embedded. | |
| "The fact that house prices are still overvalued across a range of measures, combined with the poor outlook for the underlying economic drivers of the housing market, means that house prices are likely to fall considerably further next year." | |
| Earlier this week, the Nationwide Building Society suggested that it was expecting house prices to continue to fall in the near future. | |
| Mortgage change | |
| Meanwhile, one major mortgage lender announced plans to charge new customers a higher interest rate when their mortgage deal comes to an end. | |
| The Halifax is introducing a new standard variable rate, known as the homeowner variable rate (HVR), from 11 January 2011. Anyone taking out a mortgage with the group from that date will revert to the new rate when their initial deal ends. | |
| The HVR will charge interest of 3.99%, compared with interest of 3.5% currently charged on the group's standard variable rate (SVR). | |
| This follows moves by Lloyds TSB, Cheltenham & Gloucester and Nationwide to replace their SVRs of 2.5% with ones charging 3.99% for new customers. |