The fall and fall of UK House Prices

According to the latest survey by the Nationwide Building Society UK house prices fell by nearly 16% in 2008. As a result the average price has now hit a little over £153,000. This time last year most economists had expected some fall in house prices in the coming year. However, it should be said that the actual reduction has been far more dramatic than anticipated. The main reason for this development has been the change in the availability of mortgages. Gone are the days when banks and building societies lent money with almost no regard to the ability of the households to repay their debts. We have gone back to the pattern of the 1970s when lenders have to beg financial institutions for new mortgage funds. With the lack of available funds the demand for houses has collapsed. These tighter lending conditions look set to remain in place for much of 2009. In addition with more and more people being made redundant on a daily basis it is hard to see any confidence returning to the UK housing market in the foreseeable future.

You can access information on this house price data if you follow this link...

http://www.nationwide.co.uk/hpi/