30 Jan

House prices fall further

House prices fall further

House prices have fallen further, new figures from Nationwide have revealed.

The average house price in the UK dropped from the December 2008 figure of £153,048 to £150,501 this month, a fall of 16.6 per cent since January 2008.

Such a trend may help increase affordability for first-time buyers, although the building society noted that so far the higher numbers of enquiries being reported by estate agents are not leading to higher approval rates.

However, suggested senior Nationwide economist Martin Gahbauer, this situation has a "reasonable" chance of improving, partly as a result of the recent actions by the government aimed at increasing the flow of credit, as well as the positive impact on the wider economy that moves such as interest rate cuts will have over time.

Commenting this week on the package announced by the Treasury earlier this month aimed at increasing lending, the Council of Mortgage Lenders said it amounts to a "comprehensive and co-ordinated" series of measures that should have a positive effect on the market.

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