Thursday, August 28, 2008

After dropping 1.9% in July, house prices in the United Kingdom are now falling at the fastest rate since 1990, according to Nationwide Building Society.

The average price of a home has dropped by £20,000 down to £164,654, losing 10.5% of its value in 2008. Property values fell by 1.9% in the past month, and 1.5% in July. In another study, it was revealed that house prices have been steadily falling since October last year.

Nationwide’s chief economist, Fionnuala Earley said that activities in the housing market had recently been “very subdued”, although there are signs of increased interests in home sales, possibly due to the appeal of lower house prices.

The Bank of England stated there has been an increase in the number of people taking out a fixed rate mortgage as opposed to a variable rate loan. Further research by Nationwide has concluded that mortgage approvals also fell by 65% last month.