Average house prices 'down by £2,000' in November

29-Nov-2007

The average price of a home in the UK fell by almost £2,000 in November as the housing market slowed sharply, according to the latest study from Nationwide.

The lender has said that this fall partially represents the fact that house prices saw a surprisingly large jump in October, but none the less prices did fall by some 0.8 per cent last month, according to the study.

This has brought the average price of a home down to £184,099, with the average annual rate of inflation falling from 9.7 per cent to 6.9 per cent.

With first time buyers struggling to find the best mortgage deal in a market that is constricting in light of the credit crunch, the price fall will be welcomed even if Nationwide suggests that much of the market is currently based on market sentiment.

"Housing market sentiment can itself be an important driver of the housing market, and at this point in the cycle it can easily swing on the back of every new morsel of data reported," said Nationwide chief economist Fionnuala Earley.

"At this point in the housing market cycle there can even seem to be conflicting messages in consecutive months of the same series," Ms Earley added.

"It is a relief to see that house-price inflation is slowing," said Helen Adams, managing director of first time buyer advice website FirstRungNow.com.

"This gives those first time buyers who want to get out of the rental trap a chance to step onto the property ladder.

"With the pressure of the first rung slipping away removed, there is less pressure for FTBs but this should be seen as an opportunity to seize control rather than signs of a property price crash," Ms Adams added.

The economist added that looking at longer term trends was more important in such a market – but Nationwide's three-month trend also fell back from 1.8 per cent in the three months to October to a current level of 1.5 per cent.

Buyers 'to benefit' from slow sales.



Fixes down at Nationwide

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