Price inflation drops in September

House price inflation slumped in September, according to the latest figures from the Department of Communities and Local Government (DCLG).

[UKPRwire, Wed Nov 14 2007] The government department's house price index shows that inflation reached just 0.3 per cent in the month, down on the 0.8 per cent figure recorded in August.

It is bad news if you are searching for someone to buy your property and those with terraced houses have received the biggest blow.

According to the report, terraced properties saw their value fall by 0.2 per cent between August and September.

"Although today's numbers show annual house price growth remaining in double digits, the slowdown in the UK housing market can clearly be seen," said David Stubbs, senior economist at the Royal Institution of Chartered Surveyors (Rics).

"This is the smallest rise for seven months and is the prelude to a sharper reduction in house price growth which is happening right now. Indeed, these figures show that house prices fell in five out of the twelve regions of the UK during September.

"With interest rates at 5.75 per cent and the impact of the credit crunch reducing mortgage lending options from many would-be buyers, the slowdown in both activity and price growth is unsurprising," he added.

Fast property sales expert Julian King of house buyers National Homebuyers adds, "Terraced property prices are likely to start the construction-type fall, semis and detached etc will follow.

"The market is extremely difficult at present thanks to a number of factors including added credit pressure, realignment of policy from lenders, interest rates and an overall lack of confidence in the market.

"Although figures like minus point two per cent are unlikely to send shockwaves across the UK, its continued appearance over serveral months could mean tens of thousands of people will be losing as much in value from their property.

"Those looking for a quick house sale are best advised to act quickly."

Mr King is a director of National Homebuyers, the UK's largest quick property sale firm, guaranteeing to make an offer to purchase any property surveyed for vendors who need a quick property sale.

Annual inflation reached just 10.8 per cent in September, compared to 11.3 per cent in the previous month.

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