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| Version 1 | Version 2 |
|---|---|
| UK house prices see annual fall | UK house prices see annual fall |
| (30 minutes later) | |
| House prices in the UK have recorded their first annual fall for 12 years, according to the Nationwide. | House prices in the UK have recorded their first annual fall for 12 years, according to the Nationwide. |
| Prices fell by 1.1% in April, the sixth monthly decline in a row, and were down 1% from the levels seen in April 2007, the building society said. | Prices fell by 1.1% in April, the sixth monthly decline in a row, and were down 1% from the levels seen in April 2007, the building society said. |
| Nationwide said the price falls reflected a weakening market which had been hit by "poor affordability and tighter financial market conditions". | Nationwide said the price falls reflected a weakening market which had been hit by "poor affordability and tighter financial market conditions". |
| An average home now costs £178,555 which is £1,759 lower than April 2007. | An average home now costs £178,555 which is £1,759 lower than April 2007. |
| 'Cautious consumers' | 'Cautious consumers' |
| "April was another difficult month for the housing market," said Fionnuala Earley, Nationwide's chief economist. | "April was another difficult month for the housing market," said Fionnuala Earley, Nationwide's chief economist. |
| She said that there had been a "steep decline" in house buying in the last six months owing to falling demand from first-time buyers, higher mortgage rates and tighter lending criteria. | She said that there had been a "steep decline" in house buying in the last six months owing to falling demand from first-time buyers, higher mortgage rates and tighter lending criteria. |
| The rise in unsold property on the market improved the bargaining power of buyers which pushed down prices. | The rise in unsold property on the market improved the bargaining power of buyers which pushed down prices. |
| She said that this was likely to have a knock-on effect on the wider economy, with consumers becoming more cautious. | She said that this was likely to have a knock-on effect on the wider economy, with consumers becoming more cautious. |
| But rising oil and food prices meant that the Bank of England would "prefer to cut rates at a more gradual rate than homeowners might prefer", she predicted. | But rising oil and food prices meant that the Bank of England would "prefer to cut rates at a more gradual rate than homeowners might prefer", she predicted. |
| 'Not the 90s' | |
| The figures come the day after the Bank's own data showed that new mortgage approvals had fallen to their lowest level since records began in 1990. | |
| Other surveys suggested a sharp fall in prices in March | |
| This was partly owing to the difficulty for first-time buyers in finding a mortgage deal without a significant deposit. | |
| But the fall in prices, down 1.8% over three months compared with the previous quarter, will be welcomed by some new buyers who have seen prices rocket up by 45% in the past five years. | |
| Ms Earley added that the housing market was very different to the situation in the late 1980s and early 1990s. | |
| "The underlying conditions for most mortgage borrowers are more positive than some would suggest," she said. |