House prices fall for second month
UK house prices fell 0.9 per cent in August, according to Nationwide, following a 0.5 per cent fall in July.
It is the first time the lender has recorded prices falling in consecutive months since February 2009.
Nationwide now puts the annual change in house prices at 3.9 per cent. It has fallen steadily since reaching a recent peak of 10.5 per cent in April.
The average price of a UK home stands at £166,507, down from £169,347 in July.
Martin Gahbauer, chief economist at Nationwide, said: ‘As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices.’
He said the decline in prices is ‘likely to remain relatively modest’ and is ‘not an unhealthy development’.
Low mortgage lending figures released earlier this week prompted some commentators to suggest the housing market is heading for a second slump, following the decline seen during 2008/09.
Have your say
You must sign in to make a comment
Readers' comments (5)
Melvin Bone | 02/09/2010 8:57 am
Whats the year on year figure?
Unsuitable or offensive? Report this comment
Anonymous | 02/09/2010 9:16 am
Oh, what a disaster! The world will end because UK house prices have fallen 0.9 per cent. So only 30% to go before starter homes become a sensible price again!
Unsuitable or offensive? Report this comment
Alpha One | 02/09/2010 3:54 pm
Just a second, the Land Registry reported a 0.4% increase in July and Nationwide a 0.5% decrease. They can't both be right!
Unsuitable or offensive? Report this comment
Kev Dupree | 02/09/2010 3:58 pm
Alpha one - correct
And the one that is correct is the land registry figure.
This is the only compehensive measure of all property sales and although it is produced with a 1-2 month delay, it is the only accurate figure.
Unsuitable or offensive? Report this comment
Kev Dupree | 02/09/2010 3:58 pm
Alpha one - correct
And the one that is correct is the land registry figure.
This is the only compehensive measure of all property sales and although it is produced with a 1-2 month delay, it is the only accurate figure.
Unsuitable or offensive? Report this comment