Monday, May 7, 2012

House prices fall for third consecutive month

House prices have now fallen 11.8pc since they reached their peak in October 2007.

The figures show that house prices dipped 0.2pc in April, leaving them down 0.9pc on last year, and the building society said that it expected housing market activity to "remain subdued" with prices showing little growth or a small dip over the next twelve months.

Robert Gardner, Nationwide's chief economist, said that recent softness in housing market figures has been affected by the expiry of the Government's stamp duty holiday for first-time buyers in late March. This provided an artificial boost to house prices in early 2012 as buyers brought forward purchases, meaning that the last few months have been softer by comparison.

The average price of a UK home is now £164,134, compared with £165,609 a year ago, and £167,802 in April 2010. Read More