28 Mar

March sees 'another drop in house prices'

March sees 'another drop in house prices'

Property price inflation dipped in March to stand at its lowest level for more than a decade, according to new figures released by Nationwide.

House prices dropped by an average of 0.6 per cent during the month, the bank noted, resulting in an annual inflation rate of 1.1 per cent.

While Nationwide had previously suggested that prices would stay flat in 2008, chief economist Fionnuala Earley said that a reassessment had to be made in light of the new statistics.

She asserted that the situation is now more "downbeat" and that a fall in the market is likely to be seen in the time ahead.

"A moderate fall in prices at this stage should not be unwelcome and should help to ensure greater stability in the market going forward," she commented.

In the recent past, speculation that prices were to rise would have led to demand but this will tail off, she added, as the prospect of lower prices becomes reality.

By contrast, Rightmove recently revealed that asking prices were up by 0.8 per cent in the five weeks leading up to the middle of March.ADNFCR-1222-ID-18527555-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.