Nationwide Building Society: Mortgage Update on 100 Mortgages

A report out by Nationwide Building Society shows that the slump in house prices have slowed down in November, with house prices just falling 0.4 percent, this figure significantly lower than October’s decline of 1.3 percent.

The UK’s largest building Society also warns the housing market will continue to be strained due to the poor economic conditions.

Since November 2007 house prices have fallen a whopping 13.9 percent, although if the house price slump had continued on October’s figures we would have a seen the annual slump at 14.6 percent.

Nationwide chief economist Fionnuala Earley warned that despite the decline being moderate in November, if the economy falls deeper into recession it’s unlikely we will see a swift recovery.

In Nationwide’s report it shows the national average home now costs £158,442, with house prices falling and cost of borrowing so high there is little chance first time buyers will move into the market
Sir James Crosby, former head of HBOS advised that the government needs to take direct action to kick start the flow of mortgage funds to the UK banking industry.

Source: BBC

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