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House prices fell again in November, says Nationwide
01/12/10
Edited by Andy Jowett.Residential property prices fell for a second successive month during November, according to the latest figures from Nationwide.
The mortgage lender said the value of the average home declined by 0.3 per cent to stand at £163,398.
This follows a 0.7 per cent drop in October.
House prices have now fallen in four of the past five months, with only September showing no change.
Nationwide chief economist Martin Gahbauer said one of the main factors behind the weakness in the property market since the spring has been the increase in the number of homes being put up for sale, which has seen supply outweigh demand.
He added that with interest rates at a record low, home owners do not need to make urgent sales for financial reasons and as a result, the downward pressure on values is "only modest".
"There is little evidence to suggest that house price declines are likely to accelerate in the months ahead," Mr. Gahbauer commented.
Nationwide chief executive Graham Beale recently predicted that property values would continue to fall at a steady pace because of subdued demand due to "uncertainty" over the impact of spending cuts and a rise in the flow of homes for sale.
