UK house prices fall by 15 percent

UK house prices have continued to take a battering, as the foolproof days of investing in bricks and mortar seem to be on standby in the current economic climate. According to the Halifax, UK house prices have fallen at the fastest rate in over a quarter of a century.

Halifax have announced that the average price of a UK home has fallen by 2.2 percent in the last month alone, and that the prevailing conditions will mean that the market will remain volatile.

The average UK house price is now 168,176 pounds, which is the same as what it was back in 2005, with a fall of £4,000 in the last month. However it is not all bad as when compared to five years ago, the average house price remains up by 22 percent.

On the positive side, for the first time in over four years housing affordability has increased as the house price to average earnings ratio fell below 5.0 and this is expected to fall further before the end of the year.

Demand for housing in the UK has remained low and this has been hit harder by the reduction in mortgage approvals.

The Bank of England slashed interest rates today by 1.5 percent but it is likely that lenders will not pass the saving to homebuyers.

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