Friday, 28 December 2007

UK House Prices Fall for 2nd Consecutive Month

UK House prices fell -0.5% in December after a -0.8% decline in November. The first time house prices have fallen for 2 consecutive months since August 2000. From Nationwide:

House prices fall by 0.5% in December

* House prices fell by 0.5% in November, the second consecutive monthly decline
* The average price of a UK property is £8,334 higher than a year ago
* Rate cuts will help but are unlikely to reignite the housing market as in 2005

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

UK house prices fell by a seasonally adjusted 0.5% in December, recording their second consecutive month-on-month fall. The annual rate of house price inflation fell to 4.8%, compared to 6.9% in November and10.5% in December 2006.

The average price of a UK property rose by £8,334 over the last 12 months, leaving it at £182,080 at the end of 2007. The three-month on three-month rate of growth – a smoother indicator of house price trends – fell from 1.4% in November to 0.9% in December, the lowest since November 2005.