House prices down by one third in four years after inflation
HOUSE prices in the UK have plummeted by a third, in real terms, since the middle of 2007, according to figures released this morning.
Although prices declined by a modest one per cent last year, the overall drop since the credit crunch is even sharper than in Spain, where prices are down 27 per cent, the report said.
“Real house prices in the UK have fallen by a third over the past four years, due to a combination of a weak housing market and general price inflation,” commented Professor Michael Ball, who authored the research for the Royal Institution of Chartered Surveyors.
“This has been one of the largest declines in Europe and will help to underpin housing market recovery once economic growth picks up again.”
Huge variations in house price movements throughout Europe were recorded last year.
House prices in Ireland and Spain collapsed by a further 17 per cent and 10 per cent respectively, according to data released this morning.
Yet price hikes of five per cent or more were recorded in Germany, France, Switzerland and Norway.
RICS said that the UK was balanced in the middle – with a one per cent decline in house prices.
“A notable change across Europe since 2007 has been the dramatic decline in homes being built,” RICS said. “During this period, the UK saw a 42 per cent fall in residential building permits being granted, roughly in line with the European average.”