Happy August! The 10th straight month of UK house price declines.
The latest numbers from Nationwide:
The price of a typical house fell by 1.9% in August
More borrowers opt for fixed rate loans to protect their payments in uncertain times
Gloomy Governor opens the door to rate cuts
The latest data means the annual change in house prices – since the credit crunch began a year ago – is now in double digits at 10.5%. Which is also the biggest annual decline since 1990.
Considering that that annual figure is bolstered by positive growth figures in September and October 2007, too, the actual moving annual figure for a fall in house prices will worsen in the next few months.
August’s decline is the second biggest monthly fall observed yet after May’s 2.5% drop.
How much further to fall? Consider this graph, of the long-term UK real house price trend:
Related links
House price decline hits double digits - FT