House prices continue to fall, down by 2.3 percent in February

According to Halifax, houses on average are the most affordable in six years as house prices have fallen by 2.3 per cent last month alone.

The average home has lost 17.7 per cent of its 2008 value and are now at the same levels as August 2004.

The annual drop is the largest since Halifax began records in 1983 with prices falling on average by £94.87 a day.

The drop in February has wiped off the 2 percent increase in January which has resulted in the average UK house now being valued at £160,327.

According to estate agents Knight Frank, this is a universal trend as in 2007, only 27 percent of countries experienced a fall in house prices compared to 81 percent in the last quarter of 2008.

The credit crunch has now triggered a worldwide property market collapse and the UK has experienced the second most severe fall.

At present activity levels remain low although there are a few signs that the property market is in the process of stabilisation. However, there are continued pressures with increasing unemployment and mortgages still hard to come by, especially for first time buyers.

Story link: House prices continue to fall, down by 2.3 percent in February