The latest data from the Halifax shows a 2.4 percent drop in house prices for May 2008, making them 3.8 percent lower than they were in May 2007.
A house builder commenting on the state of the housing market right now felt it was quite depressed, with sales numbers well down compared to what was expected. They are forecasting sales down by around 15 percent compared with last year and when combined with lower prices as well the state of the new house market is precarious. The Halifax figures have been confirming this situation for the last few months so it has not come as a surprise to anyone.
What is making the property market harder to work in is the limited availability of home loan funds. The Halifax mortgage providers, as well as those of other financial organisations, are being more wary of who they lend money to. Larger deposits are required now as well as a whiter than white credit history, making it much more difficult for buyers to source the funding they need.
A study carried out by the Lloyds TSB mortgage department has found that the days of the removal man may be numbered as people take a do it themselves approach.
The bank surveyed their mortgage customers and found that over half of them were planning to move into their new home under their own steam, without employing professionals to move their goods. Lloyds TSB also found that the estate agent was being cut out of 10 percent of home sales as vendors sold privately.
A Lloyds TSB mortgage department advisor commenting on the results suggested that the economic climate could be driving these changes. The average cost of employing a professional removal company is over GBP7,000 so being able to save a lot of that makes good sense.
The Halifax is to close over 50 of its estate agent branches across the country with the loss of around a hundred jobs.
The move by the Halifax comes on the back of what they have described as a significant decline in house sale numbers over the last 12 months. The heart of the Halifax estate agency business is in the North and Midlands, and it is here that they will focus most of their efforts moving forwards.
Around 550 people will find their estate agency branches closing but the Halifax will be able to relocate most of these people, with a hundred that will hopefully be taken up primarily through voluntary redundancies and natural staff turnover.