Decline in house prices slows
May has shown us that there are clear signs that the falling house prices in England and Wales is slowing. This news comes after the FT House Prices Index showed that prices had showed smaller declines since January 2009. The figures show us that transactions have fallen by 0.7 since April, after they had fallen 0.9 in February and March. These figures indicate that the speed by which house prices are falling is a third of what it was in November 2008.
These figure although they still show decline, do show that house prices are now levelling off as the housing market slowly starts to return to normality. One of the negative effects of these figures is that mortgage lenders are becoming cautious about the terms by which they will extend new loans. An effect of which is that first time buyers have to pay a 25 deposit of the loaned sum.
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June 15th 2009