Property price falls ease again

The rate at which property prices are falling showed more signs of slowing down during May, according to the Land Registry.

Figures showed that the price falls were the same in both May and April, with the average price of a property in Wales and England fell by just 0.2%.

The group commented that the rate at which property prices were falling appears to be easing. The annual rate at which property prices are decreasing has also slowed from 16.2% in April to 15.9% which means that the average property is now worth £152,497.

However figures for May have varied from region to region and five out of the 10 regions in England and Wales have seen a price rise.

Wales experienced the highest increase of 1.2%, with the East seeing a 1.1% rise and the West Midlands and the North West seeing an increase of 1%.

In contrast prices fell by a significant 4.3% in the North East, which meant that the average cost of a home in Yorkshire and Humberside was 2.3% lower. Property values in London also suffered a fall of 1.5%.

All regions in England and Wales have continued to experience large price falls on an annual basis, with the greatest year-on-year price drops seen in the North East with 17.2%, and the East Midlands with 17%.

The Land Registry reported a boost in the housing market during March with 33,161 properties bought which is a 26% increase, and strengthens recent reports that buyers are returning to the market.

However this figure was still lower than the 57,929 transactions reported during the same month in 2008. Despite this, the housing market has seen an increase for the second month in a row with both Nationwide and Halifax reporting price rises during May.

The positive shift in the housing market has also seen a 13-month high for mortgages approved for house purchases during May, according to the British Bankers' Association (BBA).

But despite recent encouraging signs economists have warned that further price falls are expected due to rising unemployment and the continuing mortgage shortage.