According to two different reports, both selling and mortgage offer prices (a price in between the selling and asking price) for property continues to fall,

The Land Registry, which records final sale prices, reported that growth in house prices fell to 2.7% in April. Nationwide Building Society, which records the mortgage offer price, reported that the average house price fell by 2.5% in May.

The figures from the Land Registry showed that the average house price in England and Wales is now down to £183,626 compared to £184,798 last month, which is the eighth month in a row that it has fallen. The Land Registry also reported stark differences in prices on a regional level with the West Midlands showing the least capital growth (-1.2%) and the South East showing the most (+0.5%).

Nationwide’s figures recorded a fall in the average house price from £178,555 in March to £173,583 in April. Although Nationwide reported an annual fall of 4.4% over the last year, house prices are still 5% higher than they were two years ago.

Fionnuala Earley, chief economist for Nationwide, told PIN: “There are three reasons why borrowers are in a better position than in the early nineties. First, fewer borrowers have bought at the top of the cycle; second, the loan-to-value ratios are lower than they were and finally a much bigger proportion of borrowers have taken out a repayment policy rather than an endowment policy.”

When asked about her views with regard to an oncoming recession, Earley added: “The Nationwide’s central forecast is that the economy will not hit a recession. There will be a rise in unemployment, some forced sales and it will be an uncomfortable time for some but I am not expecting a recession.”