Further slowdown in house prices

The Nationwide now predicts prices will fall this year.

Annual house price inflation has fallen to its lowest rate for 12 years, according to the latest survey from the Nationwide building society.

It said prices fell by 0.6% in March, taking the average UK house price down to £179,110.

That meant that the annual rate of increase fell to just 1.1%, the lowest rate since March 1996.

BBC.co.uk - 28 March 2008

The Nationwide said house prices had now fallen for five months in a row and predicted prices would fall further.

Nationwide chief economist Fionnuala Earley admitted that this was a change to its earlier forecast that there would be no overall change in prices by the end of this year.

“A clear change in sentiment since the late summer has led to the sharp slowing in house price growth, prices are now 1.5% lower than three months ago,” she said - full article