oh dear: UK house prices post biggest yearly fall in 19 months

[AtW]

Halifax said the average price of a home stood at £160,519 in May, representing a 0.1pc month-on-month rise. However, prices fell 4.2pc in the three months to May compared with a year ago - the biggest fall since October 2009.

Analysts had forecast a monthly rise of 0.2pc, with a three-month annual decline of 4.1pc, after April's 1.4pc monthly fall and three-month decline of 3.7pc.

"The fact that Halifax reported that house prices could only rise fractionally in May after a particularly sharp drop in April reinforces our view that further weakness lies ahead in the face of ongoing muted housing activity and difficult economic fundamentals," said Howard Archer, economist at IHS Global Insight.

Britain's housing market has been slowing since the middle of last year and recent data show mortgage approvals - a leading indicator of house prices - fell in April to just half their long-run average before the financial crisis of 90,000 per month.

Halifax economist Martin Ellis said the housing market was coming under pressure from low earnings growth, higher taxes, rising inflation and concerns about the outlook for jobs and growth.

Source: UK house prices post biggest yearly fall in 19 months - Telegraph

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Maybe next year I'll be able to afford a house ... or two.

[Platypus]

why oh why oh why oh why oh why are people so obsessed with house prices?

The further they fall, the better IMO, at least then they may become affordable for renters like me

[TimberWolf]

why oh why oh why oh why oh why are people so obsessed with house prices?

The further they fall, the better IMO, at least then they may become affordable for renters like me

WHS. I have no idea why people are obsessed over whether house costs will plummet like a stone and become affordable so that all will be right with the economy, fairness and aspirations of the young, savers and renters again. It is a complete mystery.

Having said that I hope they do crash, as they should have done 10 years ago.

[TykeMerc]

WHS. I have no idea why people are obsessed over whether house costs will plummet like a stone and become affordable so that all will be right with the economy, fairness and aspirations of the young, savers and renters again. It is a complete mystery.

Having said that I hope they do crash, as they should have done 10 years ago.

I couldn't agree more and that's from the perspective of a house owner. I reckon prices have been vastly too high for years and it's long past time that they drop a lot.