House prices drop 0.1 percent in January - Nationwide

Published 01st Feb 2011

British house prices fell slightly less than expected in January, continuing the moderate downward trend in place since the middle of 2010, mortgage lender Nationwide's monthly survey showed on Tuesday.

House prices declined by a seasonally adjusted 0.1 percent last month after December's 0.4 percent rise, less than the 0.4 percent drop that economists had expected.

"The property market entered 2011 with a whimper rather than a bang," said Nationwide chief economist Robert Gardner.

"The outlook is still highly uncertain, but the most likely outcome is that the pattern of low transaction levels and prices moving sideways or modestly lower will continue through 2011."

Economic uncertainty and tighter lending rules mean mortgage approvals are half their pre-crisis average, and Nationwide said there would be further downward pressure on prices in 2011 from falling disposable incomes due to rising taxes and inflation.

Average house prices dropped by 1.1 percent in the year to December 2010, the biggest annual drop since August 2009 but far smaller than the falls of 15 percent or more earlier in 2009.

Moreover, the pace of decline appeared to be stabilising as the three-month decline in prices, which smooths out monthly price volatility, eased to 0.5 percent from 1.0 percent.

Source: ' Reuters '

View All Latest News