New house price figures may deter would-be home movers

07 August 2008

A growing number of UK homeowners may choose to stay in their current properties rather than risk making a move after the country's biggest mortgage lender reported that house price drops have accelerated.

Backing up this week's Nationwide house price study, new figures released by Halifax show that the cost of a home has fallen by an average of 8.8 per cent over the past 12 months.

This year-on-year figure for July stands in comparison to the year-on-year drop of 6.1 per cent recorded in June and is likely to lead to a further drop in consumer confidence, with many Brits set to put off a home move until the market picks up again.

However, Halifax economist Suren Thiru, noted: "A solid labour market, low interest rates and a shortage of new houses continue to support the market," he explained.

"The labour market is the key driver of the housing market and the number of people in employment is at a record high."

Anyone holding tight until the market levels out and therefore struggling for space in a small home may want to look into safe storage as a short-term solution.

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