House prices have fallen by 12.7% over the past twelve months, according to figures from the Halifax.
The UK’s largest mortgage lender revealed prices fell 1.8% during August 2008 as prices continue to crash across the UK.
Last month, the average price of a house was £174,178, down from a peak of £199,612 in August 2007.
On a three-monthly smoothed basis, Halifax’s preferred measure, prices fell 10.9%, the first double digit fall since 1983, indicating the current crash is progressing faster than that seen during the early 1990s.
Prices have now reached a level seen in early 2006, and the current trends show no signs of letting up as mortgage finance continues to be available only to those with substantial deposits.
Martin Ellis, chief economist at Halifax, says: “The pressure on householders' income, together with the reduction in the availability of mortgage finance due to the global financial markets crisis, is resulting in both lower property prices and activity levels.
“This week's announcement on stamp duty is a welcome development and will benefit a significant number of homebuyers, particularly outside the south east of England. Market conditions, however, will remain challenging.”
The Bank of England is due to announce its latest decision on interest rates by noon today, but most analysts expect rates to be kept on hold at 5% due to high levels of inflation.
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