Nationwide report, average house price down in the UK by £17,000 on 100 Mortgages

The report out by Nationwide today follows a prediction by the world’s largest credit rating agency Standard & Poor’s, stating that one in seven homes in the UK could fall into Negative equity over the next twelve months.

According to Nationwide, house prices have fallen to 8.1 percent in the past year, this rate of decline beats records since Nationwide started its monthly house price index in 1991. The rate has almost doubled in a month with June being 0.8 percent.

This means that the average property has lost £17,000 in value since last October, before this then we were seeing house prices at an all time high. Now we see the average house price at £169,316 almost £15,000 less than this time last year.

There is some good news in this gloomy climate, the Monetary Policy Committee of the Bank of England, have not increased the banks base rate which we all expected, this has aided ‘swap rates’ – so we should see fixed interest rate mortgages to come down.

If the cost of mortgages comes down, then it should improve the housing market by restoring the liquidity.

Share your thoughts on the UK housing market and what you think about the new figures out by Nationwide below.

Source: Telegraph

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