October 2008

£300bn wiped off property values since January

THE average value of homes in Britain has been falling by £43.84 every day since the beginning of the year, wiping a staggering £300 billion in value off the housing market since January.

As the property market continues to battle against the fallout from the global credit crunch, the figures from house prices website zoopla.co.uk show that property values in England have fallen £11,343 — or £46.49 per day — on average since the beginning of the year.

Berkshire has been the hardest-hit county so far, with the average home recording a daily loss of £75.51, or a weekly value drop of £528.57. Dorset has also suffered from the recent slump with average values down £64.58 per day or £452.06 per week since the start of the year.

Among the different types of properties, detached houses in England have suffered the most, losing £17,489 — £71.68 per day — on average over the past eight months.

The news comes amid predictions that the number of properties bought and sold is likely to fall to its lowest level since the 1960s.

Meanwhile, mortgage lending slumped to a new low in August, according to figures from the Bank of England.

Net mortgage lending plummeted during the month to just £143 million, less than five per cent of the £3 billion of net lending in July and the lowest level since records began in April 1993.