House Prices Fall 0.5%

• News
• Published: 30 Jul 2010 in Money and Mortgages

House prices have fallen for the first time since February due to a dwindling number of potential buyers, new figures revealed.

A fall of 0.5 per cent to £169,347 between June and July comes after figures showed that growth in the housing market stalled in June.

Buyer numbers dropped due to uncertainty over jobs and the economy, Nationwide Building Society said. Martin Gahbauer, Nationwide's chief economist, explained: "Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects."

Meanwhile, the number of properties changing hands is at half the levels seen prior to the recession, despite low interest rates and a stamp duty holiday. The supply of houses on the market has outstripped demand, and the scrapping of home information packs has also helped to increase the number of sellers.

Gahbauer said that in the wake of the recent figures, it was difficult to tell whether the housing market is on a downward trend or if prices are levelling out.