However, when looking at data showing three month average house prices – which takes all of the recent volatility out of the data, reflecting real quarterly trends, it is clear we are currently witnessing a slow rather than a dramatic fall in prices, according to the company.
The average house price in May 2008, taken from the average price provided by all five major UK indices, showed a decrease of £1,741, compared with the previous month’s average figure and a fall of £238 in the twelve months from May 2007, when the average price of a home was £209,917.
Stuart Law, chief executive of Assetz, commented: “Overall, demand is clearly greater than supply in the UK and house prices will continue onwards and upwards over the years to come following the recovery from the credit-crunch and more readily available mortgages.
“Later this year I would still expect to see strength in house price indices as a whole. In the short term this will be helped by developers cancelling the majority of their schemes going forward, reducing an already limited supply and supporting prices. In addition, first time buyers will re-enter the market as mortgages improve slightly.”
