£591 billion wiped off UK property market in 12 months

£591 billion wiped off UK property market in 12 months
Home owners in the UK have seen the equivalent of 85 per cent of their annual salary wiped off their property's value this year, according to valuation experts.

By Sarah Knapton Last Updated: 10:32AM GMT 22 Dec 2008
UK homes have lost more than £591 billion in value during 2008, the equivalent of every single British home dropping £22,083 since January, property website Zoopla found.
The research suggested the value of homes decreased by nearly 10 per cent, leaving 2.1 million homeowners owing more on their mortgages than their homes are currently worth.
It means the average homeowner has spent 85 per cent of their annual salary in 2008 simply offsetting the loss of their property's value.
Alex Chesterman, CEO of Zoopla said: "This year will be remembered as the year that marked the acceleration of the housing market correction.
"Values have been declining every month for the past 18 months and, with further job losses predicted, increased repossessions and the continued decline in the number of people buying and selling properties, the bottom is not yet in sight.
"The reality is that some homeowners will face a very tough decision next year ­ whether to try and ride out further value declines and risk falling into further negative equity or cut their losses and sell before the price drops too far."
Hertfordshire was identified as the hardest hit county in 2008 with the average house price dropping by £31,280 since January, followed by Essex at £29,377 and Middlesex £28,978.
A recent survey by Knight Frank suggested the market for prime London property is in freefall, with prices now 14.1 per cent lower than last year.
In June 1990, at the height of the last slump, the annual fall amounted to just 10.6 per cent. Over the past three months prices in London have fallen by 9.3 per cent, with houses depreciating at a faster rate than flats.

http://www.telegraph.co.uk/finance/economics/houseprices/3899791/591-billion-wiped-off-UK-property-market-in-12-months.html