By IRNA
London : House prices in Britain plunged last month by an average of 2.5 percent, the fall since the last housing crisis in the early 1990s, according to figures by Halifax, the country’s largest mortgage lender.
The monthly fall was must higher that the 0.4 per cent forecast by analysts and takes the annual three-month rate of house price inflation down to 1.1 per cent and the average house price to Pnds 191,556 (Dlrs 383,000).
But the decline was shown not to be nationally with the West Midlands down 5 per cent and Wales down 4.7 per cent, while prices in the south east were unchanged and areas such as Greater London, still growing.
Halifax’s chief economist Martin Ellis said that his bank expects that there would be a modest, low single digit fall in UK house prices this year, but that any decline should be viewed in the context of the significant price rises over recent years.
“UK prices have increased by 171 per cent over the past ten years and by 51 per cent over the last five years. The average UK price has risen by Pnd 120,860 during the past decade from Pnds 70,696 to Pnds 191,556,” Ellis said.
The fall from a 0.3 per cent price dip in February is expected to increase pressure for a further 0.25 per cent cut in interest rates from its current 5.25 per cent rate when it is decided by the Bank of England’s Monetary Policy Committee on Thursday.