Hometrack Ltd has said that the price of houses in the UK have fallen 0.1 percent in August amid a fragile housing market.
The London-based property-research company said that August is the second month of decline after the prices fell 0.1 percent in July. An indicated of demand for the houses fell 1.3 percent for the third month while an indicated of supply rose 0.8 percent in the UK, according to the report.
The UK housing market is facing a difficult economic situation due to the slowdown in the economy as well as the ongoing sovereign debt crisis in the Eurozone. The officials of the Bank of England are now trying to review the impact of measures to boost credit in the UK.
The government recently launched “funding for lending scheme” of £80 billion, under which, cheap credit is offered to banks so that it can be lent to people looking to buy homes. The scheme is aimed at lending to the housing market and businesses. The government has also launched a NewBuy scheme for people looking to buy a house for the first time. The scheme provides 95 per cent loan-to-value mortgages.
Richard Donnell, director of research at Hometrack said in a statement, “The market remains in a fragile state. As the supply-demand balance weakens, we expect to see slow downward pressure on prices over the remainder of 2012.”