Research suggests "some stabilisation" in house price falls

02-Oct-2008

The long-term prospects for the UK's housing market are looking more positive, according to Nationwide.

Its survey of house prices could give hope to first-time buyers (FTBs) who have been concerned about ending up with negative equity in their properties.

The figures show that house prices will continue to fall in the short term, but also reveal there has been stability in the rate of decrease over the past three months.

Fionnuala Earley, Nationwide's chief economist, says: "This may suggest the beginning of some stabilisation in the pace of house price falls."

The average house price now stands at £161,797, an annual change of -12.4 per cent, the survey reveals.

Ms Earley also points out that the number of FTBs borrowing above 90 per cent has halved.

"Although price falls are not painless, they do contribute to restoring housing affordability to more sustainable levels, which is positive for the market over the long term," she concludes.

Earlier this week independent financial expert Alvin Hall advised FTBs to stay aware of the current economic climate and how it could affect their personal finances.

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