Land Registry's House Price Index: October Prices Down From a Month Earlier

LSL estate agency stated that because mortgage finance remained difficult to obtain for potential buyers, it has put a drag on house price growth and into negative territory for yet another month. Cautious lenders and spending cuts will put further downward pressure on prices into the New Year, with the Northern region likely to be hit hardest by austerity measures.

However, Marsh & Parsons suggested that the Central London housing market “operates almost independently from the rest of the country”. Growth is still healthy and housing supply shortages have driven up prices from a year earlier. Though supply shortages have been somewhat alleviated, demand remains strong, with cash rich buyers, from both from the UK and overseas, unaffected by tight credit market conditions.

Zoopla.co.uk commented that while there have been some new entrants to the mortgage market over the last few weeks, only the easing of lending criteria would allow potentials buyers to support the market prices.