Source: Telegraph
The average UK home lost 1.7pc of its value in September, leaving prices 12.4pc lower than they were a year ago. The drop eclipses the worst annual fall during the house price crash of the early 1990s, when in the final three months of 1990 prices were 10.7pc lower.
According to the widely-watched survey, the average home is now worth £161,797, down from £164,654 in August.
Nationwide expects the next two years to be “difficult” for the once-booming housing market. Prices have been hit as the credit crisis forces banks and financial institutions to pay more for the money they then pass on to potential homeowners.
Despite co-ordinated and sustained action by the Bank of England, America’s Federal Reserve and the European Central Bank in recent months, there is little sign that money is going to become much cheaper for banks to lend.
Fionnuala Earley, chief economist at Nationwide, admitted that “we would need to see a significant shift in consumers’ sentiment before we begin to see any real recovery in activity and subsequently house prices.”
Related Blogs
- Related Blogs on housing prices
- Comment on British house prices in freefall, seen falling 30% from …
- British house prices in freefall, seen falling 27% from peak
- US Home Prices Still Falling
- Global Insight: US House Prices Declines CONTINUE to SLOW
Entries (RSS)