Released on: August 11, 2008, 11:53 pm

Press Release Author: Gracy

Industry: Financial

Press Release Summary: The squeezed credit condition has marked the doom for the
realty market and the house prices are now at the lowest level.

Press Release Body: London (Longdogfinance) Aug 08, 2008: On Thursday a data from
Britain\'s biggest mortgage lender HBOS showed that the house prices in Britain fell
at a record annual rate to their lowest level in July, which displays the mind-set
for the economy darkens.


The prices actually fell by 1.7% on the month, which is significantly the sixth
straight fall in a row, in accordance with the lender\'s Halifax house price index.
It took them almost 10.9% lower on the year, which shows a sharp diminution than any
time in the last housing collapse in the early 1990s.


\"This continues the run of bad news on the housing market. Declines have been pretty
unrelenting for the last six months,\" reported Dominic White at ABN AMRO. \"This
could go on for the next year,\" he replied.


Actually more than 20,000 pounds have been used off the value of the normal British
home as the peak in costs in August last year and economists report that the cost
might fall by another 10-15% as the investors have tightened up borrowing terms.


The unpleasant news came as the policy makers of Bank of England were holding their
monthly rate-setting encounter but still no change is expected as inflation is
almost double the target of central bank.Yet, almost all the analysts expect the
Bank of England to cut the rates at some point, though not for few months, as the
market slide of housing takes its toll on the wider economy.


The house builders have also declared thousands of job cuts and as such the
furniture retailers have been hard hit as the quantity of property transactions has
been halved from a year ago. However, earlier this week a report by ratings agency
S&P analysed the house prices might fall by another 17 percent, which can alter the
quantity of people in negative equity from 70,000 households to 1.7 million next
year.

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