House prices 'lowest since 2005'

News Category: Industry News

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The average property value fell to the lowest level since September 2005 last month, according to Chesterton Humberts' cebr house price poll of polls.

After a 1.7 per cent drop in January, the average house was said to cost £167,751, some 15.3 per cent down on the same month in 2008.

But despite lower house prices, many would-be buyers are still turning to renting solutions instead.

Figures from Your Move showed that in December 2008, rental demand was up 63 per cent on an annual basis.

Douglas McWilliams, chief executive of cebr, echoed the findings of this report by highlighting lack of finance as a "fundamental issue" behind house price slump.

Lack of mortgage products is forcing many would-be homebuyers to switch to rented accommodation instead, boosting business for landlords and letting agents.

Indeed, a study by Business Development Research Consultants showed that 100 per cent of landlords with 20 or more properties were posting higher profits amid the current economic climate.

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