Housing market: Autumn chill already blowing over sales

30th August 2011

According to The Guardian, Hometrack, the property data company, has forecast steeper falls in prices this autumn – with the latest figures showing a 3.6% annual fall in August.

Hometrack's report shows that house prices have not yet reached their trough, despite falls of about 10% since the credit crunch.

Richard Donnell, Hometrack's director of research, said pressures on household income as a result of lower than inflation salary increases and the rising cost of living would result in weaken demand as autumn sets in.

Hometrack also claimed that demand for housing could itself weaken and that price inflation in parts of London had put a gloss on the figures for the first half of the year.

The Halifax claimed that it was cheaper now to buy than to rent; he average monthly cost for the first-time buyer of a two-bedroom flat totalled £567 in July 2011, 16% (£110) lower than the typical rent on the same property type (£677 a month).

The Telegraph quotes Suren Thiru, housing economist at Halifax, saying that would-be first time buyers were still likely to find their first home purchase a challenging event. She cited difficulties in raising a deposit and economic uncertainty.

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