The Bank of England is under intense pressure to cut interest rates again tomorrow after house prices fell by the biggest margin since the early 1990s crash and ministers tried to prevent a spate of repossessions.

Philip Webster and Grainne Gilmore, The Times – 9th April 2007

Gordon Brown insisted that the latest falls — 2.5 per cent, or nearly £5,000 for a typical property in March, according to the Halifax — were containable after the big gains of the past decade. The figures showed, however, that annual house price growth has slowed to its lowest level for 12 years. Property prices rose by only 1.1 per cent during the past 12 months, meaning that they are falling annually in real terms.

The falls were even more dramatic in some regions, such as the West Midlands, where they fell by an average of £9,000 during the first three months of the year, and Wales, where the average cost of a home has dropped by about £8,000.

Annual house price growth has turned negative in three regions, with prices now lower in Wales, the West Midlands and the South West than they were a year earlier – full article