Drops in house prices

According to the latest study by Halifax, the affordability of property has increased in more of UK's largest cities.

The drops in house prices which have been observed over the last three years has improved affordability across the whole country and widened the choice of homes available to potential homebuyers.

The study has also revealed that one can buy a semi detached property £150,000 in five out of the ten largest British cities this year, whereas at the end of 2007 it was possible to buy the property of the same type for £150,000 in just one large city.

Moreover, a budget of £250,000 could purchase a property of any property type in five out of the ten largest cities in the UK, compared to three years ago.

London turns out to be the only city in the UK where the average house price  for all property types still exceeds £250,000. According to other findings, house prices in towns of southern England have surpassed in performance other regions.

Surprisingly, seven out of the ten cities with the best performance in house prices are located in the south of England. Wiltshire has seen the most substantial increase in house prices compared to the rest, with the average house price jumping by 8.9 per cent over the period of the last three years.

Shetland and Barnstaple were next in the list of the best performers. In the North, Altrincham and Northallerton were also doing fine.

Accordingly, the northern towns have seen the biggest drop in house prices over the last three years. Jarrow saw the most significant decrease, with the average house price dropping to 31.4 per cent over the same time period.

Martin Ellis, of Halifax, commented that the better performance of the housing market in the south was the result of more stable economic situation of this region of the country.

She said that Halifax expected a slowdown in house prices fluctuations in general this year but with the higher probability of decrease.

Basing on the fact that only 6 per cent of the UK towns saw an increase in house prices since the end of 2007, Martin Ellis expresses the view that there are opportunities for both homeowners and potential homebuyers.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.