House prices fall even further over lack of demand

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HOUSE price falls accelerated last month as demand fell back with consumers concerned about the economy, a report from property analyst Hometrack found.

The price of a typical home in the country dropped by 0.2 per cent in October, compared with falls of 0.1 per cent over each of the previous five months, while average growth is down by 2.8 per cent on the previous year.

Demand for housing also fell by 0.2 per cent in October, the third consecutive month in a row, fuelled by concerns over the economy and household finances, the report found.

On the supply side, October saw a 1.3 per cent increase in the number of homes listed with agents, meaning supply has grown by 11 per cent over the last six months. The report predicted that the balance between supply and demand points to an acceleration on price falls in the coming months.

Richard Donnell, director of research at Hometrack, said: ‘Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices.’

Weaker demand means that the average time for a home to stay on the market is 9.8 weeks, having crept up over a period of three months.

The survey questions estate agents in England and Wales about achievable selling prices.