House prices fall 1% year on year
30 April 2008
Britain's house prices have recorded their first annual fall in more than 12 years, it has been reported.
Figures from the Nationwide building society suggest that the price of a typical property is now one per cent lower than it was this time last year.
Commenting on the data, chief economist at the financial services provider Fionnuala Earley states: "April was another difficult month for the housing market.
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"This is the first year-on-year fall in prices since March 1996 and brings the price of a typical house to £178,555, £1,759 lower than at this time last year."
She attributes the drop to weakening faith in the housing sector due to tighter financial market conditions and poor affordability.
Concluding, Ms Earley suggests that the weaker economic climate is likely to lead to the Bank of England's monetary policy committee (MPC) making additional interest rate cuts.
Earlier this month, the MPC elected to cut the interest rate to five per cent.
Other news: Mortgage Approvals slump to record low
