Nationwide Building Society’s own survey has confirmed earlier lender surveys; slower economic growth is with us but recession is not.
The period December 2007 to February 2008 saw average UK house prices fall again - for the fourth month running - this time by 1%.
In terms of house price inflation, this fell from 4.2% in January to 2.7% in February - a 27 month low
Nationwide’s Chief Economist, Fionnuala Earley, indicated that these figures were not a reason to be uncheerful given that numbers for the same period last year were so strong:
It should not be surprising that we are entering a slower phase…the outlook is just that, slower growth rather than recession.
Inevitable buyer uncertainty coupled with increasing energy and food costs is fuelling the domestic slowdown as global governments seek to temper the credit crisis. The Bank of England’s Monetary Policy Committee cut interest rates by a quarter of a percent to 5.25% in February.
The average cost of a house in the UK is now £179,358.
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