House price drop is steepest in twelve years

Source: Exec Digital UK

Date :29/11/2007 08:55:37

Nationwide, Britain’s fourth largest mortgage lender, has said that UK house prices suffered their biggest fall in November since June 1995.

Fionnuala Earley, Nationwide's chief economist, said: "November's data confirms that the housing market is indeed cooling in line with the weakening in housing market drivers.

“Poor affordability, weaker house-price growth expectations and the effect of earlier increases in interest rates have all affected demand,'' she continued.

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“There are uncertainties in the market, not least from the continuing turmoil in the U.K.'s financial markets.''

The cost of an average home slid by 0.8 percent Nationwide said, the first drop in price seen since February last year, while the annual rate of house price inflation now stands at 6.9 percent, down from 9.7 reported in October.

However, the group stressed that monthly figures could be volatile, and added that November's drop was partly a reflection of the strong gain seen during October.

November 29, 2007