Further drop in prices of UK homes for sale

UK Homes for sale prices fall

Prices of UK homes for sale are still falling and have dropped by 1.4 per cent in the last month alone, Nationwide has said.

Experts from the building society said the price of a typical UK house is now 14.6 per cent lower than at the same time last year.

A reluctance on the part of sellers to reduce asking prices could still be hindering market activity, Nationwide said, adding an average home now costs £158,872.

Although the average is now nearly £30,000 less than a year ago, it is still nearly £30,000 more than five years ago, the company added.

Fionnuala Earley, Nationwide’s chief economist, said :

“As the economy weakens further there is likely to be more movement on asking prices as sellers adjust to the prevailing conditions and reassess their own needs.

“Some may choose not to sell after all, thus reducing supply, but others will adjust their prices accordingly.”

Buyers also currently face problems at the bank, with many high street firms running tight squeezes on mortgage lending.

However, Ms Earley also said interest rates are likely to continue to be cut sharply, which will “make life easier” for borrowers who are on variable rate mortgages and those approaching the end of fixed rate home loans.

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