1 Oct

House price "inertia" in September

House price "inertia" in September

Britain's residential housing market continued to stagnate last month amid the Northern Rock crisis, according to property intelligence firm Hometrack.

Its latest national survey shows unchanged house prices during September, the second month in a row neither growth prices have remained unmoved.

Both demand from buyers and a fall in the number of houses coming on to the market occurred last month, reflecting what Hometrack's director of research Richard Donnell says is a period of "inertia" in the market.

He says despite the uncertainty caused by the dearth of interbank credit, house prices are not falling because of a shortage of supply.

"If anything there appears to be a tightening in supply in the face of greater uncertainty," Mr Donnell commented.

"While demand and sales volumes look set to remain weak over the rest of the year, a lack of saleable properties look likely to support achievable prices.

"In contrast weaker demand is likely to impact most on asking prices which tend to bear the brunt of any decline in confidence."

Today's data from Hometrack reflects September figures from property website Rightmove. It blamed the introduction of home information packs for the fall in supply and saw a 2.6 per cent drop in asking prices.ADNFCR-1222-ID-18299160-ADNFCR

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