LONDON, Oct. 8 (UPI) -- Home values in Britain plummeted in September, the nation's largest lending group, Halifax, said Friday.
The value of homes fell on average by $9,561, Halifax said. The Daily Telegraph reported that the average home price fell from $267,926 in August to $258,320, the largest month-to-month drop since Halifax began tracking the data in 1983.
The price drop is expected to ripple though the economy, as home owners have considerably less collateral to bank on when applying for a home equity loan. Government fees and taxes based on property values will also decline. Refinancing also becomes more difficult when homeowners find equity in the current contract fails to match their expectations.
A spokeswoman for the Council of Mortgage Lenders, Sue Anderson, said: "The future direction of house prices remains uncertain. But house price falls exacerbate the problem that people with lower levels of equity face if they wish to move or remortgage".
Halifax economist Martin Ellis said a market imbalance brought home prices up a year ago, but continued high unemployment and a lack of consumer confidence are now eroding prices.
UPI
