Property prices drop in May

11 June 2010 | By Samuel Dale

The number of homes sold also fell by 18% from April levels, which were running at 35% less than in 2007.

But the annual price increase on 2009 still had a big jump of 9.7% although this was less than April’s figures.

Dr Peter Williams, chairman of Acadametrics, says: Perhaps unsurprisingly, given the widespread uncertainty that exists, the housing market dipped in May. The average price of a home in May 2010 was £220,353 - slightly down on April’s figure and well below the peak of £231,828 in February 2008.

“On a regional basis, we saw price reductions in all regions, ranging from a 2% fall in the East Midlands to a 0.1% fall in Greater London.”

The average house price in London stands at £374,758 while prices in the north average just £149,804.

The annual changes also vary in different regions with London increasing by 15.3% on average in the last three months but Wales growing by only 4.3%.

Dr Williams says the spring months are usually good for estate agents and that this year’s May figures show the lowest transaction levels for 15 years.

He added: “The start of 2010 looked promising in terms of a recovery in the housing market. However, this did not continue into May and we are now left with the question as to whether we will see an aboce average increase in sales volumes in June, as investors seek to sell before the presumed capital gains tax rise.”

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