Government Figures Show UK House Prices Falling Slower

It is official; the rate of decline in UK house prices is slowing. Today, the UK government, well the Department for Communities and Local Government released the April figures from its index, and they showed that house prices fell three percent in the quarter ending April, compared to a 3.9% fall in the quarter ending January. They also showed a 1.1% increase for the month.

This is the fourth major index to show that the rate of UK house price decline is slowing on the back of increasing activity and low supply, but most analysts believe it is a very shaky stabilisation.

"If you want to look at this as a house price floor, then imagine it as a sheet of cardboard nailed across the joists as a temporary floor," said Richard McKay, director of private property sales community Zungalow.com.

"If activity continues to increase, while supply stays low, or the former increases more rapidly than the latter, then concrete will be poured on, breaking the cardboard and becoming a more solid floor. If the opposite happens then water will be poured on, the cardboard will be destroyed and prices will start to fall through the floor," he explained.

Meanwhile an article on the Assetz.co.uk news blog closed with:

"If you intend to buy at the bottom of the market then act now - more and more headlines and news stories over the next 30 days will wake up sellers to the strength of the market."

It is worth mentioning that Assetz is not known for its impartiality, in the same article they say that their analysis of all the major indices shows house prices increased 10% in May, but they included the Rightmove index, which showed a 22% increase in asking prices not sale prices.