House Prices Fall

Figures from the Nationwide show that the price of the average house has fallen in March by 0.6% to £179,100.

The annual rate of house price inflation is now 1.1%, the lowest since March 1996.

Fionnuala Earley, group economist for Nationwide, is quoted in The Times:

"The outlook for UK house prices is clearly more downbeat. Some of the downside risks we identified in November have become a reality — most notably the continued turmoil in the financial markets."

Howard Archer, chief economist for Global Insight, is predicting a 5% fall in house prices this year and next.

The downturn and continued uncertainty wrt the economy adds to the pressure on the Bank of England to cut interest rates.

Posted in: bank of england,economy,inflation,interest rates,mortgages,property