1% decrease in property prices in June

30 July 2008

Land Registry figures show tenth consecutive monthly drop

New figures from the Land Registry have shown that property prices in England and Wales decreased by 1% between May and June.

The decrease means that the annual rate of increase was just 0.1%. It was the tenth consecutive month that the annual rate of growth has seen a slowdown.

It now means that the average property price in England and Wales has dropped to £180,781.

However, a social housing group predicted that property prices would see a 25% increase by 2013, despite the current slowdown caused by the credit crunch.

The National Housing Federation (NHF) said that average property prices in England would increase by 25% over the course of the next five years because the construction of new properties would not be able to keep up with the consumer demand for new homes.

David Orr, the NHF’s chief executive, said: “As soon as the economic outlook improves, house prices will resume their previous upward trajectory.”