British government confirms house price decline

According to the British governments own house price index, house prices have fallen during the last year, the index published by the Communities and Local Government department (DCLG), showed a surprising 1 percent rise in house prices during the course of July but overall it showed that July house prices were 0.3 percent lower than a year ago.

Some leading mortgage lenders sat that house prices have fallen about 11 percent in the last year as the credit crunch took its toll and decreased the supply of mortgage funds.

When we look back at the crash in the early 1990’s the problems were caused by high interest rates and unemployment, currently the problems in the market are caused by the supply of credit. The average UK property price is now down to £217.171 according to the DCLG survey, although across the country this is not uniform, prices in Wales are down 0.8 percent in Northern Ireland they are down 10.3 percent and in England 0.3 percent, Surprisingly it’s a completely different story for those in Scotland, their average property price has risen by 3.6 percent over the last year.

Read the full article in the BBC