Property prices fall in August Published: 05/09/2008

Property prices continued their downward spiral last month, according to new figures.

Research from the Halifax showed that house values fell by an average of 1.9 per cent in August.

The monthly fall brought the annual decrease down to 10.9 per cent in the period between June and August.

Between August this year and last, property prices have fallen around 12.7 per cent, the figures show.

An average property in the UK will now cost £174,178, following the falls in recent months.

Martin Ellis, chief economist of Halifax, said: "The pressure on householders' income, together with the reduction in the availability of mortgage finance due to the global financial markets crisis, is resulting in both lower property prices and activity levels."

Halifax also said that rising food and fuel prices and the economy as a whole are causing a housing market crisis as people are also unable to get credit to buy property.

Howard Archer, chief European economist for Global Insight, said: "Major downward pressure on house prices continues to come from extremely weak market activity, stretched buyer affordability and tight lending conditions."

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