House prices fall 0.8% in November
29 November 2007
House prices experienced a 0.8 per cent fall in November but despite uncertainties remaining, underlying market fundamentals are supportive.
This is the verdict of Nationwide's new November House Price Report, which also discovered that the introduction of the final phase of Home Information Packs (Hips) may have reduced available housing supply in the short term.
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Fionnuala Earley, chief economist at Nationwide, said the price of a typical house in the UK now stands at £184,099, which is a £12,000 increase on the figure for the previous year.
She added: "The 0.8 per cent monthly fall is the first since February 2006 and the largest monthly fall since June 1995. However, monthly data can be volatile and the sharp fall this month is partly a reflection of the strength recorded last month and in November last year."
And while the final Hips roll out will affect the supply of housing in the short term, the ultimate outcome is not yet clear for those aspiring to get on the property ladder.
Ms Earley concluded: "The scheme could speed up the process by removing those not serious about moving, but it is likely to reduce the numbers of speculative sellers which could limit the available supply and make the house search process longer."
