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HOUSE PRICE FALL JUST A STUMBLE
March 2010
THE news that house prices have fallen for the first time in almost a year is simply a ‘stumble’ which can be overcome by the market, an East Lancashire expert has predicted.
New figures from Nationwide Building Society show that there was a 1 per cent drop in prices during February, for the first time in 10 months.
This drop has been put down to a slowing of activity in the market, as the Government’s stamp duty ‘holiday’ ended in the New Year.
However, Graham Ireland, conveyancing partner at Haworth & Nuttall solicitors, points to figures which show that despite the monthly price fall, the annual rate of price growth still increased by almost 10 per cent.
He said: “Looking at the month of February, figures do show a drop in prices which, I believe, can be explained by three factors – firstly, the snow and cold weather causing many people to put off going to look at properties to buy; secondly, the end of the stamp duty holiday meaning that buyers now have money to find which they may not have needed to do before the end of 2009; and thirdly, the time of the year because, traditionally, January and February are quieter times of the year.
“If you look at the situation as a whole, the annual rate of price growth is still increasing so I am confident that this monthly drop is simply a stumble on the way to market recovery.
“There are still plenty of signs of recovery in the form of more activity in the first time buyer market and more mortgage products being made available by lenders.”