House prices slip – but mortgages are most affordable in 15 years
National house prices have fallen for the second month in a row in August, pushed down by a static London market that had previously been on the up in 2012.
Hometrack's monthly house price index, published today, offers a gloomy outlook for property prices, with predictions of further downward pressure on prices in the months ahead.
The average national home price slipped 0.1 per cent in August – the same as July – with demand across the country having fallen for the past three months, according to the canvass of 1,500 agents and surveyors.
"The market remains in a shallow state," said Richard Donnell, Hometrack's director of research. "Thin volumes and a sluggish market, compounded by seasonal and one-off events, is reflected in volatility. As the supply-demand balance weakens, I expect to see slow downward pressure on prices over the remainder of the year."
For borrowers there is brighter news, as Halifax research today reveals that mortgage payments are at their lowest level as a proportion of disposable earnings for 15 years. Typical mortgage payments for new borrowers – both first-time buyers and home-movers – at the long-term average loan-to-value ratio stood at 26 per cent of disposable earnings in the second quarter of 2012 after peaking at 48 per cent in the third quarter of 2007.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...