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House prices fall and likely to go lower

House prices in the UK fell 0.4% in September and are down 1.4% over the year, according to Nationwide.

House prices fall and likely to go lower

UK house prices fell by 0.4% in September, according to Nationwide.

The decline follows a 1.1% rise in August and brings the price of a typical home to £163,964.

However, Robert Gardner, Nationwide’s chief economist, said the monthly rate of house price change is not the best guide to the state of the market due to a number of one-off factors such as the end of the stamp duty holiday for first-time buyers in March.

‘The annual rate of house price change is a better guide to the state of the market at present,’ he said. ‘On that basis, the housing market remains fairly stable, with prices 1.4% lower than September 2011’.

Looking forward Gardner said he expects house prices to remain relatively flat or decline modestly over the next twelve months.

‘Policy measures such as the Bank of England’s Funding for Lending Scheme should provide support for activity in the housing market by ensuring the availability of credit and lowering its cost,’ he said.

‘However, labour market developments will remain of paramount importance in deciding the trajectory of house prices,’ he added.

The news comes just two days after property website Hometrack reported a 0.1% decline in house prices in England and Wales – the third monthly price fall in a row.

Richard Donnell, director of research at Hometrack, blames the fall in house prices on 'weakening demand, a fall in sales agreed and a re-pricing of unsold stock’.

3 comments so far. Why not have your say?

joe stalin

Oct 02, 2012 at 13:46

hmm a fall of about £800 or a bit less a little more than rounding error but no doubt it will provoke the usual raft of hysterical commentary on this board.

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Dislexic Landlord

Oct 02, 2012 at 14:02

Outside London property prices have to fall

Its all about afordability

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Oct 02, 2012 at 14:59

I'm amazed they haven't started going up with monetary inflation caused by the BoE printing hundreds of billions of pounds of new money. No doubt the time lag between creating money and monetary inflation will catch up soon.

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