House prices have slumped to their lowest level in nearly three years, but Britons are more optimistic over a market bounceback, lender Halifax said today.
The average house price slid 2.4% to £159,883 in April, as the end of the stamp duty exemption in March, when prices rose almost as sharply, put off buyers. Prices are now at their lowest since July 2009, although in real terms today’s prices are below that as Halifax’s index is not adjusted for inflation.
Despite the news, nearly four out of 10 people reckon the housing market will rise this year against 20% predicting a fall, according to the lender’s market confidence survey.
City economists take a more downbeat view as high unemployment and headlines over a double-dip recession deter people from getting on the property ladder, despite record low interest rates. IHS Global Insight’s Howard Archer said: “We expect house prices to fall by a further 3% by the end of 2012.”
