British house prices fall for second month in row: survey

2nd September 2010, Comments 0 comments

British home prices fell for a second month running in August when they dropped 0.9 percent compared with July, a key survey by home-loans provider Nationwide showed on Thursday.

"House prices fell by 0.9 percent month-on-month in August, following a decline of 0.5 percent in July," Nationwide's chief economist Martin Gahbauer said in a statement.

"This is the first time since February 2009 that house prices have fallen in two consecutive months."

British house prices had risen for five months prior to falling since July.

"Recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year," said Gahbauer.

"As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices," he added.

The average value of a home in Britain stood at 166,507 pounds (200,000 euros, 256,00 dollars) in August, according to the Nationwide survey.

House prices rose by 3.9 percent in August from the same month in 2009 -- a marked slowdown compared with July's annual gain of 6.6 percent.

© 2010 AFP

0 Comments To This Article