House Prices Suffer Further Decline

According to the British Land Registry, house prices in England and Wales have dropped another 0.2% last month.  This has come as a shock after over a week’s worth of reports stating that the end of the recession is near and economic growth is just around the corner.

These latest figures come as a direct result of a statement made by the Council of Mortgage Lenders detailing that lending levels had continued to fall back during the month of May, however the rate of decline is finally starting to slow down.

Of the areas worst hit, the North East and Yorkshire suffered losses of 4.3% and 2.3% respectively, shortly followed by London which dropped a staggering 1.1%, as reported by the land registry.  These figures bring the annual rate of decline down to 15.9% which has resulted in around half as many home sales during the period of December – March. Previously, this figure was observed at 16.2%.

Whilst this is not overly optimistic news regarding the British economy, economic analysts have stated that the drop is starting to shallow out and the housing market does look set to stabilize which many people doubt.  The UK’s precarious situation in the global economic market still remains unclear, and the government is yet to make any clear policy decisions regarding the future. This has lead to a great deal of condemnation by the Bank of England towards the Treasury and current Labour government.

The house price fluctuations the United Kingdom prove just how closely tied things are to the failing labour market.  With economic analysts reporting the housing market is starting to level out and steady, the truth is in today’s current economic climate the only thing that the British people can do is wait.

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