Region hit by falling house prices

House prices are falling in the West Midlands quicker than almost any other area, new figures reveal today.

Across the UK house prices fell for the seventh month in a row during April to leave homes costing less than they did a year ago, according to information group Hometrack.

The average value of a property in England and Wales fell by 0.6 per cent during the month to stand at £173,100.

But the West Midlands saw the steepest drop at 0.8 per cent, with an average price of £142,000.

The average terraced property price in the region is £87,200; semi-detached £117,000; detached £193,900; and flat/mais-onette £69,300.

The latest falls helped tip the annual rate of growth into negative territory, with homes now costing an average of 0.9 per cent less than they did in April 2007.

At the same time there was a fall in both the number of new buyers registering with estate agents and the number of sales agreed.

Homes are now taking an average of nine weeks to sell, compared with just six weeks a year ago, as unrealistically priced properties remain on the market.

And those who do manage to sell are having to accept an average of 92.7 per cent of the asking price.

The figures add to the recent spate of grim news on the property market, with Halifax claiming house prices slumped by 2.5 per cent during March.

British Bankers' Association data also recently showed mortgage approvals for house purchases had dived by 46 per cent in March compared with the same month in 2007.

The housing market has come under increasing pressure due to several factors, including the credit crunch.

Richard Donnell, of Hometrack, said: "Whilst the availability of finance is impacting on demand in certain segments, the reality is that weak confidence is effectively resulting in a 'buyers' strike', with households sitting on the sidelines and waiting to see how events unfold," he added.