Annual House Price fall for first time in 12 years

The average house price in the UK has made it’s first year on year drop since March 1996. After 12 years of inflating house prices, the average house is now 1% cheaper than it was a year ago standing at £178,555.

Could this just be the start?

David Blanchflower, a member of the Bank’s Monetary Policy Committee, said recently that house prices could fall by up to 30% over the next few years if interest rates were not cut to keep control.

Reports: BBC, Times Online, Business Week