House prices drop sharply in April despite mortgage approvals pick up
HOUSE prices plummeted by 1.1 per cent from March to April, government figures revealed yesterday.
Yet a separate survey showed an increase in approved mortgages for the month, providing some sign of rising activity in the market.
The monthly drop in April’s prices largely offset the 1.2 per cent jump recorded in March, according to the Department for Communities and Local Government (DCLG).
The average house price across the country came in at £204,439 in April, down 0.3 per cent from the same time in 2010, the data showed.
The annual drop was largely driven by falling prices in Wales (down 1.4 per cent), Scotland (down 1.2 per cent) and Northern Ireland (down 15.2 per cent).
In England, prices remained flat across the previous 12 months.
“Not only do economic fundamentals remain difficult overall for the housing market but the May survey from the Royal Institution of Chartered Surveyors indicates that more houses are coming on to the market,” said Howard Archer of IHS Global Insight, “thereby diluting the possibility that a shortage of properties could provide significant support to house prices.”
However, the number of house purchase loans was up eight per cent in April, compared to March, totalling 40,900, or £5.9bn in value.
“One swallow does not make a summer,” warned David Whittaker of Mortgages For Business. “Activity will remain subdued this year.”