House prices fell for the eleventh month in a row

House prices fall as buyers scent bargains

House prices fell for the eleventh month in a row in August, in the latest sign that the housing slump is deepening. Average prices dropped by 0.9pc over the month, following a 1.2pc slump in July, according to Hometrack. Its measure of house price inflation dipped to 5.3pc year-on-year, the lowest level since the survey began. However, buyer interest is growing on the back of lower prices and reductions in the cost of mortgages, according to Hometrack director of research Richard Donnell.

This trend could well become more evident over the autumn as we continue to move towards more realistic levels of pricing, he said.

The average discount on asking prices across England and Wales was 9.3pc during the month, an increase on spring 2007, when buyers were paying an average of 95.7pc of the asking price. However, although buyers are able to achieve significant discounts, it remains extremely difficult for many to secure financing, particularly first-time buyers.

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As the funding is the issue here we at IMS Foreign Exchange believe there is still another 10% for property prices to fall in the UK and abroad. Hold on to you hats the rides about to get a little bumpy

Bye For Now