House prices fall for third month in a row

Published:  01 October, 2012

MANCHESTER: House prices in the UK fell for a third month in a row as a result of weakened demand across the sector. The monthly Hometrack survey reported registered buyers falling 3.6% in September.

Average house prices in the north west suffered the biggest regional fall in England and Wales. Selling prices in September fell 0.3% month-on-month in the north west, compared with a 0.1% fall overall.

Hometrack attributed the fall in demand to the sluggish economy and persistent affordability issues for potential buyers. Richard Donnell, director of research at Hometrack said: "While the Government's Funding for Lending scheme is likely to support a modest increase in mortgage lending, the uncertain economic outlook, together with affordability pressures will continue to act as a drag on housing market activity.

"The last four surveys have reported a decline in housing demand with September registering the largest fall at -3.6%. The legacy of summer, which saw a slowdown in demand driven by seasonal factors compounded by the Olympics, has continued into September."

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