Land Registry: House Prices Fell in August, as was Foretold Here

Well, I was right. I wrote an article at the tale end of last week, attempting to predict what the Land Registry's house price index, released today, would say.

I predicted that it would show a monthly fall, the first for some time, and what I said would be the first of what would become a second dip in UK house prices. Read the article here.

If you don't read the article, you wil think it was just a lucky guess, but believe me it was based on some science. I would call it an educated guess. Time will tell if I was completely right, and if prices do indeed fall from here on out.

Now, to cover the release itself. According to the Land Registry the average price of a UK house fell by 0.1% in August. The annual rate of decline is still slowing, but as I have said previously, it is logical that the rate of annual decline will start to slow once you get past a year into the crash.

Richard McKay director of UK private property sales portal Zungalow.com shared my beliefs and so he shares the glory of being right. He said in the article: "The economy is still too depressed and transactions too low to justify the positivity we are hearing about at the moment. The price floor is made of wet toilet paper and eventually it is gonna come crashing down. Of course all properties are falling in price, so people can still sell and trade up without being affected. Find out more on our blog."

Like I say, time will tell if this is the beginning of the second dip that myself and so many other analysts have been warning of since prices started rising.