House prices fell in first quarter



DCLG

DCLG

The Communities and Local Government department (DCLG) revealed that UK house prices had fallen a little in the first three months of 2011.

House prices fell by 0.5% compared with the previous three months according to the departments survey.

In March, house prices increased by 1.2% however, leaving them 0.9% up on the same time last year.

London saw prices increase on a different level to the rest of the country, with prices up 5.6% in the last 12 months, well up on the rest of the UK.

Director of Home Fusion, Micholas Ayre revealed, “The property market, very clearly, has fragmented into a series of micro-markets.

“It could be many years before we see the return of a property market that trends at a national level.”

The DCLG complete their survey by analysing 60% of all house purchases where a mortgage was involved.

Prices in the south-east and east of England were up, as was the East Midlands, but dropped everywhere else. Northern Ireland saw the biggest fall, with house prices down by 14% in just 12 months.

Howard Archer of HIS Global Insight said, “The DCLG data showing a marked rebound in house prices in March do not materially alter our view that house prices will lose ground over the coming months.”

“House prices are notoriously volatile from month to month and from survey to survey,” he added.

“Furthermore, both the Halifax (by 1.4% month-on-month) and the Nationwide (by 0.2% month-on-month) reported falls in house prices in April,” he added.

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