UK House Prices Fall for the First Time This Year

UK House Prices Fall for the First Time This Year
By [http://ezinearticles.com/?expert=Matt_D_Lambourne]Matt D Lambourne

Average house prices have fallen for the first time this year, analysis from online property portal Rightmove has found.

During the month of July, asking prices dipped by 0.8 per cent compared to June. It takes the average value to �270,159 and causes annual growth to fall from 7.7 per cent to 6.5 per cent.

Homes in London have remained the most stable, decreasing by just 0.4 per cent. The North and East Midlands experienced the largest declines at 1.9 per cent each.

Experts believe that changes to the way in which mortgages are regulated has played a role in the fall. Banks and building societies are now required to conduct more stringent affordability checks than before due to fears that increased lending could cause a property bubble, particularly in Greater London and south-east.

Under the Mortgage Market Review, lenders are now only permitted to loan money at 4.5 times a person's income in 15 per cent of their cases.

Miles Shipstone, Rightmove director and housing market analyst, believes that concerns over possible interest rate rises have been a factor as well as people thinking more about their summer holiday and the FIFA World Cup.

He said that confidence amongst buyers has been knocked by the suggestion that mortgages are becoming more difficult to obtain and the worry that repayments are likely to rise.

Simon Bradbury from Thomas Morris Estate Agents believes the market is just "catching its breath" rather than slowing down. He pointed out that there has been continual prices increases this year and it was inevitable that values would be scaled back in some regions.

Putting that to one side, 2014 has still been hailed as 'The year to move' because of government-backed schemes such as Help to Buy allowing many people get a foot onto the property ladder without the need for a large deposit.

Help to Buy is also assisting people moving for the second or third time in what Rightmove has dubbed "the middle market". Research by the agency suggests that the scheme will be utilised by as many as 27,000 house movers in the next 12 months.

While first-time buyers are of great importance to the market, third-timers account for the bulk of purchases at 46 per cent.

For vendors, the good news is that average selling times have also fallen this year from 75 days to 65.

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Article Source: [http://EzineArticles.com/?UK-House-Prices-Fall-for-the-First-Time-This-Year&id=8700837] UK House Prices Fall for the First Time This Year