UK House Prices Fall by 3.2% in a Year

House prices in the United Kingdom continue to fall as the report by the Land Registry suggests.

According to the report published by the Land Registry on Monday, November 28th, house prices in Great Britain fell by 3.2% compared to the same time last year. The month-on-month decrease constituted 0.9%.

The average house in England and Wales was priced at 159,999 pounds in October 2011, reports Land Registry.

The biggest decline was seen in the north-east of England and constituted 7.2%. London was the only region to experience a rise in property prices; it amounted to 0.3%.

In the opinion of Lucy Pendleton, of James Pendleton estate agents, “market and consumer sentiment have weakened quite dramatically since the late summer and this is clearly feeding through into prices.”

Furthermore, Howard Archer of IHS Global Insight, is determined that UK house prices will fall by another 5% by the middle of 2012. “We hugely doubt that October’s spike up in house prices heralds the start of a sustainable pick up in house prices. We suspect it will prove to be a temporary spike,” he said.