Pace of fall in house prices slowed down in November

Posted under General by Michael

The pace of falling house prices has slowed down in November, reported Nationwide. House prices fell by 0.4% in November as compared with 1.3% fall in October. Despite the slowdown, Nationwide believes that recovery in prices in near future was still distant possibility due to continuous deterioration in economy which was putting pressure on housing market.

Nationwide reported that monthly fall has brought down average house price to £158,442 in November. The annual rate of price fall has slowed down to 13.9% as against year-on-year decline of 14.6% in October.
According to Fionnuala Earley, chief economist at Nationwide, conditions were not yet conducive for quick recovery in spite of slowdown in house price falls. He added that continuously falling prices are not encouraging potential borrowers to enter the housing market.

The slump in mortgage lending has subdued the housing market. Borrowers are also finding it difficult to obtain mortgage without higher deposits. This week, former HBOS chief, Sir James Crosby, suggested to the Government to initiate necessary steps so that mortgage funds start flowing. If Government fails to take such actions, Sir James apprehends that mortgage lending would completely stop and lead to further decline in prices and property transactions.

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