House prices fell more sharply in May

Thursday 21 June 2012

House prices fell 5.5% in May, compared with a year ago, meaning the price drop is accelerating, the national statistics office CBS said on Thursday.

In April, house prices were down 5.2% and in March 4.7%, the CBS said.

The price drop affected all parts of the country and all housing types.

The lower prices may be encouraging more people to take the plunge. Earlier this week, land registry office figures showed 2.7% more homes changed hands in May compared with a year ago.

Nevertheless, only 42,000 homes changed hands over the first five months of this year, down 12% on 2011, the CBS said.

Breathing new life into the housing market is likely to be a central theme in the forthcoming general election. In particular, mortgage tax relief is likely to be reformed.

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