Nationwide reports house prices largest drop on 100 Mortgages

Nationwide house prices tumbled 1.7 percent last month according to the UK building Society which makes it their biggest annual drop since they began keeping records.

House prices are now 12.4 percent lower than a year ago, making the average property price £167,797, this was the 11th month drop in a row and takes it to the lowest price since February 2006.

The difference is shocking from this September from a year ago, with fewer sales, first time borrowers borrowing less and prices tumbling.

An economist at the Global Insight, Howard Archer said “Affordability ratios are still very stretched despite the double digit falls in house prices seen so far, while lending conditions are tightening even further due to the heightened financial market problems,” he said.

With hopes that the Bank of England will cut interest rate next week, this may only provide limited support to the housing market amid the global financial crisis. It’s likely that house prices will fall further in 2009.

Read the full article: timesonline

Related Articles

No Comments
»