House price indices fail to reveal falls
Nick Hopkinson, director of property company PPR Estates, claimed taking inflation into account house prices have fallen despite the latest Rightmove house price data stating prices have remained at the same level for the past five years.
He said: “The latest data from the biggest estate agency website confirms once again that UK house prices remain stuck at 2007 levels.
“This doesn’t sound so bad at first glance compared to many other asset classes given the wider economic backdrop.”
He added: “However, if you take into account inflation which has been compounding at over 3% a year, house prices have fallen more than 14% in real terms over the last five years since Northern Rock kicked off the global credit crunch.”
Hopkinson added that if the “distorting” effect of London house prices are taken out of the measure the fall is closer to 25% in real terms for most areas of England and Wales.
Rightmove claimed today that house prices this month remain almost unchanged since September 2007 at £235,176 – down just 0.1%.