Nationwide: House prices falling

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Nationwide: House prices falling

Thu 29th Nov 2007

Britain's housing market is cooling, figures from Nationwide's latest house price report have suggested.

Prices have fallen by 0.8 per cent this month, whereas home purchase approvals and additional market drivers have also weakened, commented Fionnuala Earley, chief economist for Nationwide.

Factors influencing the decline include poor affordability, weaker house price growth expectations and the continued effect of increases in interest rates over the last year, she said.

Nationwide's house price report also revealed that the annual rate of increase has fallen to 6.9 per cent this month, but the building society does not predict a recession in the UK even though home purchase approvals will continue to fall into 2008, according to Ms Earley.

Conversely she added: "With interest rates on the way down and the continued issue of undersupply of housing in the UK Markey, the underlying fundamentals are perhaps more positive than the recent swings in sentiment might suggest."

Annual house price growth was recorded at 8.9 per cent after a 0.5 per cent fall in property prices during October, according to last month's Halifax House Price Index.

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