House prices fall again

 

HOUSE PRICES FALL AGAIN
Article date: 29/09/2005 : 16:39:59

The housing market continues to stabilise as latest figures show that house prices dropped by 0.2 per cent for the second consecutive month while the number of buyers has increased.

The Nationwide house price report said that UK prices fell in September by 0.2 per cent, as they did in August, and the annual UK rate of house price inflation is only 1.8 per cent, the lowest it has been since May 1996.

The building society believes that slower house price growth and lower interest rates have provided the conditions for more people than last year to invest in a house, as mortgage repayments will not be as high.

Fionnuala Earley, Nationwide's group economist said: "The number of house purchase approvals increased to 97,000 in July, their highest level for a year and just above the average for the last 12 years.

"Estate agents have consistently reported increased buyer interest over the last few months, which should help to support the market going forward."

She also said that Nationwide expects both house prices and monthly house purchase approvals to stay at about the same levels they are at now for the rest of the year.
 
 
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