House prices continue to fall

30-Oct-2008

Nationwide's latest house price index has offered positive news to potential first-time-buyers (FTB), after it recorded the twelfth consecutive month of house price falls.

The statistics showed that UK house prices dropped by 1.4 per cent in October, with the average property now worth 14.6 per cent less compared to this time last year.

Fionnuala Earley, chief economist at Nationwide, commented that the average UK property is now worth £158,872, some £30,000 less than 12 months ago when the market was at its peak.

The index also reported that it took an average of 12 weeks for homeowners to sell a property this month, compared to 7.4 weeks in October last year.

Commenting on the figures, Oliver Gilmartin, senior economist for the Royal Institution of Chartered Surveyors, predicted that house prices will not recover in the near future.

"With the country teetering on the brink of recession there seems little likelihood that house prices will recover in the short term as fears over job losses take centre stage," he said.

Earlier this week, Alan Harper of Moneyfacts.co.uk said falling house prices are a "godsend" for FTBs, but warned that those who delay buying a home in the hope that the downturn will continue over a long period of time could be taking a gamble.

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