House Prices Fall For Eighth Month In A Row, Government Reports
House prices have dropped year-on-year for the eighth month in a row, official figures showed today.
The typical house sold for £205,796 in November 2011, the Department for Communities and Local Government (CLG) said, the latest month for which the figures are available.
This figure is 0.3% lower than the same period last year and remains broadly unchanged on October's average price.
Meanwhile, the typical sum paid for homes by first-time buyers increased by 0.7% over the year to November, to reach £152,543.
But the average price of properties bought by people who have already owned their own homes decreased by 0.7% to £238,699 over the year to November.
Analysts warned that banks' willingness to lend to would-be buyers is set to diminish this year due to the weakened economic backdrop.
Howard Archer, chief UK and European economist at IHS Global Insight said: "We suspect that weakened economic activity, low wage growth, rising unemployment and major concerns over the economic outlook will limit potential buyers and weigh down on house prices.
"On top of this, a significant number of people are still finding it hard to get a mortgage."
Average prices went down in all UK nations over the year. England saw a 0.1% drop to average £213,668, Wales experienced a 1.6% drop to £146,812, Scotland saw a 0.8% drop to £160,602 and prices in Northern Ireland plummeted by 11.7% to reach £135,402.
London registered an annual house price increase of 3.2% and continued to show its relative strength with an average price of £346,123.
The North West saw the largest decrease over the year in the English regions, with prices dropping by 3.3% to average £144,807.