House prices plummet 2.5%

The figures are worse than many analysts had expected and the Halifax has revised its predictions for 2008, saying prices will now fall over the year. The major fall in prices means the average British home costs just 1.1% more than it did a year ago, the lowest rate of annual growth for 12 years and significantly lower than inflation. Over the first quarter of 2008, prices fell by 1.1%, meaning the average UK home now costs £191,556, according to the Halifax. The figures increase the likelihood that the Bank of England will cut interest rates this week. However, recent rate cuts have no...