August 28, 2008
UK House prices fall by 10.5%
The UK housing sector continued to show signs that a slide into recession is inevitable as the Nationwide Building Society reported that house price values had fallen by 10.5% over the last 12 months. This dramatic fall in prices represents the quickest rate of decline since 1990 and thousands of homeowners are now finding themselves in negative equity. The building society predicted that the trend will continue until the end of 2008.
To add to this bad news, industry analysts warned that the UK’s static economic situation means that in certain geographical areas house prices could fall by as much as 20%
Economists also fear that if the economy is not revived, in the near future, increasing numbers of people will be forced to part with their homes, especially if there is an increase in unemployment levels.
There does , however, appear to be light at the end of the tunnel, as the Nationwide stated that it expected that the housing market will experience some kind of meaningful recovery by 2012.