Hometrack has reported a fall in house price in October of 0.9%, the fourth consecutive monthly decline in house prices.
The extent of house price falls increased over October with prices down across 56% of the country, compared to 34% in September and 30% in August.
Hometrack says that rising supply and faltering demand off the back of concerns over the economy and cuts in Government spending have led to deteriorating market conditions.
Demand for housing dropped by -2.0% in October – the fourth monthly fall in a row. Despite the weakening outlook, the supply of homes coming to the market continues to grow. October saw supply grow by 1.9%. Over the past six months the supply of homes for sale has grown by 14% while demand has fallen by 8%.
Across the country the North West saw the greatest extent of price falls (71% of postcodes registered falls) followed by the West Midlands (66%).
Weakening market conditions have resulted in the average time on the market rising to 9.6 weeks – the highest level since May 2009.
The East Midlands and Wales now have an average time on the market of over three months.. The proportion of the asking price being achieved has dropped to 92.7% the lowest level since September
Wales (91%) and the North East (91.3%) have the weakest underlying pricing in terms of the proportion of asking price being achieved.
Richard Donnell, director of research at Hometrack, said: “House prices fell by 0.9% in October – the fourth monthly fall in a row and the largest fall since January 2009. Further price falls are inevitable in the run up to Christmas and are likely to continue into the first half of 2011.
