Nationwide predicts house price falls into 2010
Monday, November 10, 2008
The UK's largest building society today said it expected house prices to continue to fall next year as it announced it had cut lending by more than two-thirds.
Nationwide Building Society's chief executive Graham Beale said house prices would continue to fall by 1% to 1.5% a month for the rest of the year and there would be further price drops in 2009-10.
Last month, the society said prices were down 14.6% year on year, with the average price of a home now almost £30,000 less than a year ago.
Beale said interest rate cuts, which Nationwide has so far passed on to customers in full, would help the market.
"Rate cuts will help to minimise payment difficulties and alleviate payment shock as borrowers reach the end of their existing deals.
"Reducing prices will improve affordability, which should bring about a recovery in the first-time buyers' market."
Releasing its interim results for the six months to September 30, Nationwide said it had advanced £1bn worth of mortgages, when repayments and redemptions were taken into account.
Read the full article at Guardian online
Nationwide Building Society's chief executive Graham Beale said house prices would continue to fall by 1% to 1.5% a month for the rest of the year and there would be further price drops in 2009-10.
Last month, the society said prices were down 14.6% year on year, with the average price of a home now almost £30,000 less than a year ago.
Beale said interest rate cuts, which Nationwide has so far passed on to customers in full, would help the market.
"Rate cuts will help to minimise payment difficulties and alleviate payment shock as borrowers reach the end of their existing deals.
"Reducing prices will improve affordability, which should bring about a recovery in the first-time buyers' market."
Releasing its interim results for the six months to September 30, Nationwide said it had advanced £1bn worth of mortgages, when repayments and redemptions were taken into account.
Read the full article at Guardian online
Labels: credit crunch, House market, Mortgage rates, Nationwide
