House prices fall again

A survey of UK house prices has recorded a fall for the fourth successive month as prices dropped 0.3 per cent in the four weeks to mid-January.

The Hometrack survey also revealed that the drop in prices had lowered the annual rate of increase to 2.3 per cent, while the time sellers took to find a buyer had increased to 8.5 weeks on average, the longest period since the website began its surveys in 2001.

Would-be homeowners may decide to opt for the self build method in view of the increased possibility that any home they buy may fall in value rather than rise.

Hometrack's head of research Richard Donnell said the near-term prospect for the housing market "hinges as much around the outlook for UK interest rates as it does the outlook for financial markets".

Bank of England monetary policy committee member Professor David Blanchflower has told the Guardian he believed the current base rate was "too restrictive" and should be cut as soon as possible.


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