Property values continue to fall, figures show

by Christopher Evans

House prices in the UK have continued to fall, according to the latest figures.

Nationwide's monthly index has shown that the average cost of a home is now £158,872.

This represents a 1.4 per cent drop compared to September, as well as a 14.6 per cent drop compared to one year ago.

And chief economist at Nationwide Fionnuala Earley noted that October is the 12th consecutive month in which prices have fallen, although she added that the typical house is still nearly £30,000 more expensive than five years ago.

Commenting on the findings, the Royal Institution of Chartered Surveyors noted that tighter lending criteria have been the main reason for the fall.

Many sellers are being forced to lower asking prices as a result, with these dropping by 13 per cent in some areas, senior economist Oliver Gilmartin observed.

"With the country teetering on the brink of recession there seems little likelihood that house prices will recover in the short term as fears over job losses take centre stage," he added.

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Published on: October 31, 2008

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