Hometrack see house prices dropping

25 October 2004
House prices dropped at the fastest rate for three years this month - but experts are rejecting rumours that a crash is coming.

The Hometrack survey found that the average house price had slipped for the fourth month in a row to stand at £163,800.

Hometrack's John Wriglesworth explained: “House prices are likely to drop further over the next few months due to the current excess supply and the expected seasonal fall off in the number of prospective buyers.

“[But] house prices will not plummet into an abyss as some of the doomist commentators have been predicting.

"Stagnation, not deflation, is the most likely future course of house prices over the next 18 months," he concluded.
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