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.