Nationwide: House prices continue downward trend

| December 1, 2010 | 0 Comments
Nationwide: House prices continue downward trend

The latest house price index from the Nationwide Building Society has revealed a 0.3% fall for the month of November compared with October - the fourth time in five months that prices registered a fall.

The latest fall means house prices are now just 0.4% higher than this time last year with the average UK home costing £163,398.

However, commenting on the figures, Nationwide’s chief economist Martin Gahbauer, said house price declines are unlikely to accelerate “in the months ahead.”

“There is little to indicate that these sellers need to achieve a sale urgently for financial or economic reasons, which means that the downward pressure on house prices is only modest,” he said.

There is little good news surrounding the housing market currently. Earlier this week, housing intelligence group, Hometrack, revealed house prices in England and Wales fell for the fifth consecutive month in November.

According to Hometrack, house prices fell by 0.8% in the month to £155,000.

Other housing surveys suggest the market is cooling. Last week, the Land Registry reported a 0.8% fall in house prices for the month of October, while HMRC revealed a slump in the number of homes sold in October in the UK.

According to HMRC, 79,000 homes worth at least £40,000 or more were sold in the month, a fall of 11% on an annual basis.

Also this week, the Bank of England revealed mortgage approvals fell again in October – to an eight-month low.

According to the Bank of England, there were 47,185 loans approved in the month – the lowest level since February, albeit in line with expectations of 47,000.

The figure is less than half the level reached at the height of the housing boom in 2007.

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