House price drops are as much as 25 per cent for most of England and Wales, according property company PPR Estates.
Director Nick Hopkinson said that the latest data from Rightmove confirms that UK house prices remain stuck at 2007 levels.
He said: “This doesn’t sound so bad at first glance, compared to many other asset classes given the wider economic backdrop.
“However, if you take into account inflation which has been compounding at over 3 per cent a year, house prices have fallen more than 14 per cent in real terms over the last five years since Northern Rock kicked off the global credit crunch by becoming the first UK retail bank in living memory to effectively go bust.
“In fact, if you also strip out the distorting effect of houses in London’s millionaire enclaves then the falls are more likely 25 per cent-plus for most areas of England and Wales in real terms. With the credit crunch still in full swing and inflation still roaring ahead of all official targets house prices are very unlikely to recover anytime soon for most of us.”
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