Nationwide: House Prices Continue To Fall
House prices have fallen for eight months in a row when compared with last year as a fragile economy takes its toll, Nationwide said.
The cost of a home in Britain was 0.9% lower than in October 2011, taking average prices to £164,153.
But on the month, prices were up 0.6% in September - more than offsetting the 0.4% fall in October - as monthly prices continue to fluctuate.
It comes despite data released last week revealing the UK had emerged from its double dip recession, and Nationwide's chief economist warned the UK economy remains "extremely fragile".
"This in turn suggests that the situation is likely to remain challenging in the housing market," Robert Gardner said.
"Although the UK economy has been adding jobs in recent quarters, even in the midst of recession, conditions remain very difficult for households."
He stressed that as people focus on repairing their finances rather than spending, and wage growth fails to keep up with the cost of living, housing market activity will remain subdued.
The Bank of England's £80bn Funding for Lending Scheme - which provides banks with cheap funds if they keep lending to households and businesses - should improve mortgage lending, he said.
"Nevertheless, housing market conditions are likely to remain fairly subdued until there is a sustained improvement in the wider economic environment," he added.
The building society's regional breakdown showed that London's house prices held up the best in the three months to September - with prices up 2.1% compared to the same period last year.
While Northern Ireland continues to see largest price falls, with prices now down 53% compared with 2007 levels.
what do you think?
HOUSES should be worth NO MORE than 3 times the wages of those that COULD AFFORD to buy that house .................... meaning the average house price should be much less than 100 grand ! but good old british "rip off" capitalism ensured that the exhorbitant house prices were used to justify the obscene price rises of staple foods and goods !!