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                UK House prices fall by 1.2% in July          Dated: 28/07/2008


The UK housing market has settled into a slump as house prices fell for the 10th month in a row, dropping 1.2% in July, according to property market watcher Hometrack. 

Hometrack figures show July's price drop has wiped £2,000 from the value of the average UK house which now stands at £168,500. Over the last year about 4% has been knocked off house prices which is equal to about £7,800 from this time last year when the average house price was £176,300. 

Hometrack said every test of activity in the UK market showed that the slowdown was now gathering pace. 

"Indicators of market activity across the housing market remain weak with the survey highlighting a 20% drop in demand over the last three months," said Richard Donnell, director of research at Hometrack. "Transaction volumes have been the greatest casualty of the decline in demand over the last 12 months, the vast majority of homeowners simply do not need to move at the moment."

The time it takes to sell a property jumped by almost a week to an average of 11 weeks, rising from 10.3 weeks in June. Homeowners pushing for a quick sale have had to accept just 90.9% of their asking price falling from 91.6% last month. 

Donnell said "Recent price falls have been concentrated in southern England. Despite this the survey revealed prices fell across 64.9% of the country compared with 58.9% in June. 

"The majority of recent price falls have been concentrated more in southern England where prices have declined off a relatively high base after the strong growth through 2006 and the first half of 2007," said Donnell.

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