The advertised cost of a UK home fell 0.8pc from £272,275 in June to £270,159 in July, according to new data from the property portal, Rightmove as reported in the Daily Telegraph
21 7 2014
The North and the East Midlands suffered the biggest declines of 1.9pc each, while house prices in Greater London dropped 0.4pc this month, as the Capital hit an affordability ceiling and demand across the country curtailed. Property values have fallen for the first time in 2014, down by £2,116, with the UK’s annual growth rate slowing from 7.7pc in the 12 months to June to 6.5pc in the year to July, due to tighter regulation on mortgage eligibility, the Rightmove House Price Index revealed.  Off-the-back of a string of warnings from Mark Carney (pictured below) that the frenzied London housing market is the biggest threat to the UK economy, the Governor of the Bank of England took steps to prevent reckless lending and curb rising household indebtedness last month.

The central bank told banks and building societies that they should only make 15pc of their total loans at 4.5 times the borrowers’ income and introduced a futuristic interest rate stress test for borrowers.

Such market disruption and additional red tape has slowed the mortgage approval rate and is being felt on the ground by UK estate agents