Nationwide: House prices slide 0.7% in October

| October 28, 2010
Nationwide: House prices slide 0.7% in October

The latest house price index from the Nationwide Building Society has revealed a 0.7% fall for the month of October compared with September.

The latest house price gain means the annual rate of house price inflation fell to 1.4%, down from 3.1% in September, with the average UK home costing £164,381.

Meanwhile, the three-month-on-three-month rate of change, which is a more reliable indicator or near-term price trend, fell by 1.5% in October.

Commenting on the figures, Nationwide’s chief economist Martin Gahbauer, said: “If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010.”

While the fall in prices will be welcomed by first-time buyers, the fact remains they are still struggling to secure a mortgage, unless they have a significant deposit.

A recent report by the Home Builders Federation (HBF) established that the average age of a first-time buyer was 37 years old.

According to Stewart Baseley of the HBF, first-time buyers are “almost entirely shut out” of the market.

Mortgage approvals have slumped to their lowest in over a year as banks restrict credit to only the safest of borrowers.

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