Fall in UK house prices slows

According to the Nationwide’s latest figures, although the average house price has fallen by £430 in November to £158,442 the drop is less than expected.

Nationwide’s chief economist, Fionnuala Earley, warned that the UK housing market is not on the way to complete recovery as the average house is still worth £25,000 less than it was last year.

On a positive note, there is still a reduction in the annual rate of decline but due to the prevailing economic conditions, a swift turnaround is going to be highly unlikely, added Ms Earley.

This is further being hampered by the weakening labour market as job security falls, which will further reduce demand especially for top-end properties, as prices are in proportion with salaries.

With mortgages still struggling, there is little incentive for those who are renting or first-time buyers,.

Most analysts expect the property market to remain weak as long as the nation is in recession. However, it is hoped that the government’s £20 billion rescue plan, as well as the cut in interest rates will get the property market moving again.

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