House prices lose 0.4% in April

| April 30, 2009 | 0 Comments
House prices lose 0.4% in April

Nationwide’s latest house price index shows a 0.4% fall in the average price of a home in April.

The decline means the average domestic residence is now worth 15% less than a year ago, at £151,861.

It also scuppers hopes that the 0.9% price rise reported by the building society in March launched the UK housing market on a definite route to recovery.

Taking the more reliable three month average, prices fell 3.1% in the first quarter of 2009 compared with the final three months of 2008.

The result marks an improvement on the three months to the end of March, when Nationwide record a quarterly fall of 4.1%.

The lender’s chief economist, Fionnuala Earley, blames a continued shortage of mortgage funds, the downturn in the economy, and the threat of unemployment for the continued slump in the market.

Turning to affordability, Ms Earley acknowledges that the UK’s entry into negative inflation means an increase in real earnings but says she believes it will take some time for this to impact on sentiment.

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