UK housing slump continues

As per the latest findings from Halifax, house prices in the UK have fallen by 6.1 per cent year-on-year which is the largest fall since 1993, leaving the average price of a home at £180,344, nearly 10 per cent lower than the peak back in August 2007.

Prices are being affected by a lack of activity in the market as there are far fewer first-time buyers as it is difficult to save for a deposit and even harder in the current climate to get a mortgage deal as prior to the credit crunch and the reduced availability of mortgages, buyers were putting down larger deposits.

Meanwhile it is estimated that only 300,000 first-time buyers entered the market in 2007, the lowest number since 1980.

The latest figures revealing the downturn of the property market coincided with housebuilder Barratt revealing that they would be cutting 1,200 jobs as a result of the slump and the mortgage situation.

According to Prime Minister Gordon Brown, declining house prices are damaging consumer confidence and affecting support for the government.

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