Tuesday, March 22, 2011

House prices drop by £45,000 since start of credit crisis

House prices have dropped more than £45,000 since the beginning of the credit crisis, new research reveals.

The average value of a home in Britain is £201,000, down 18 per cent from £247,500 in October 2007, according to property website Zoopla.

Much of the drop has been seen during the last eight months, with prices dropping 11 per cent since last summer.

The North East has been hardest hit, down 14.12 per cent since last July with average local house prices at £142,242. London has proved to be the most resilient, down 7.59 per cent to £378,295.

Zoopla suggested that the recent fall in values may have created a buying opportunity.

Nick Leeming, business development director at Zoopla.co.uk, said: “While it has been a challenging period for the property market over the past few months, the recent dip in prices and the notable variance between regions may have created some interesting buying opportunities. The first half of 2010 provided strong gains in market values but, since last summer, economic uncertainty and lending constraints have eroded these gains and put downward pressure on house prices.” (read more)