House price affordability grows

by Christopher Evans

The average cost of a house in the UK fell in April, new figures have indicated.

Halifax's House Price Survey for April showed a 1.7 per cent drop in the average price to £154,716, with the annual dip now at 17.7 per cent.

The reduction in price was less than in March - which showed a 1.9 per cent decline - suggesting the rate of price reduction may be slowing.

However, chief economist at the lender Martin Ellis said that "further house price declines are likely" in the coming months as low levels of credit availability and consumer confidence, plus high unemployment, will continue to have a downward influence.

In the longer run housing affordability will not approve much more unless the government honours its plan to build three million new homes by 2020, pressure group PricedOut.org.uk has argued.

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Published on: May 6, 2009

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