Nationwide: House prices fall for third consecutive month
Thursday, 31 Jan 2008 12:17
House prices have fallen for a third consecutive month
UK
house prices have fallen for a third consecutive month according to the Nationwide monthly house price index.
House prices were down by 0.1 per cent in January after a 0.4 per cent fall in December, the building society said.
The annual rate of house price inflation was also down from 4.8 per cent to 4.2 per cent, the lowest it has been since December 2005.
The average house price is now £180,473, a drop of almost £2,000 from December when it stood at £182,080.
Martin Gahbauer, Nationwide's senior economist said: "The weakening trend in house prices during the last three months is consistent with the loosening in housing market conditions that has become increasingly evident in the data.
"This undoubtedly signals a continued cooling in annual house price inflation during the months ahead."
Commenting on the figures Royal Institution of Chartered Surveyors senior economist David Stubbs said: "The market is becoming looser and titling the balance of power away from sellers and towards buyers."
He added that the continuing trend would cause first-time buyers to suffer.
"Conditions in the mortgage market need to improve if the thousands of would-be first time buyers out there are going to be able to get their foot on the ladder in coming months."
The Nationwide figures will add to the expectations that the Bank of England will cut
interest rates next week.
The rate currently stands at 5.5 per cent.