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13
May
House Prices Down
According to
Nationwide, Uk House prices have recorded their first annual fall
for 12 years. An average home now costs £178.555, which is
£1,759 lower than April 2007. Prices fell by 1.1% in April,
and were down 1% from the levels seen in April 2007.
Nationwide's chief economist, Fionnuala Earley said, "April
was another difficult month for the housing market". She also
predicted, that rising food and oil prices meant the Bank of
England would, "prefer to cut rates at a more gradual rate,
than homeowners might prefer, and that the banks £50bn plan
for banks to swap potentially risky mortgage debts for secure
government bonds was well thought out".
The buyers bargaining power was improved by the rise in unsold
properties on the market.
David Blanchflower, a member of the Bank of England's Monetary
policy Committee which sets interest rates, said that house prices
could fall by 30% over the next few years if interest rates were
not cut.
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