House prices fell again last month

After several months looking as if a recovery was on the way, the property market is suffering again with average house prices down, data from SmartNewHomes.com reveals.

The average price of a new home in September was 255,916, down 5.3% since the same month last year. This is the sixth consecutive month of negative annual price inflation and represents a sharp decrease on last month’s average price, down 2.3%. Prices are also down an average 2.1% as compared with the last quarter – the first quarterly decrease since May 2005.

Regionally, only Scotland, Wales and East Anglia escaped the downturn, seeing positive price growth over the past year.

London remains the most expensive region with prices rising yet further over the past few months.

The East Midlands has the cheapest average new home price but remains one of the least popular regions, with more people moving out than in. This pattern is duplicated in the West Midlands and London. Scotland, the South-West and Yorkshire and Humberside experienced the reverse trend with the influx of home buyers outnumbering departures.

David Bexon, managing director of SmartNewHomes.com, says: “Though we expect house prices to pick up after the summer slowdown, we have seen a further downturn. This could be due to a number of factors with the pressure on the economy from the global oil crisis, limited consumer confidence and reduced high street spending all contributing.”