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| Version 2 | Version 3 |
|---|---|
| House prices 'fell 15.9% in 2008' | House prices 'fell 15.9% in 2008' |
| (about 1 hour later) | |
| House prices fell by 15.9% last year, according to the latest survey by the Nationwide building society. | House prices fell by 15.9% last year, according to the latest survey by the Nationwide building society. |
| It says prices fell by another 2.5% in December taking the average house price down to £153,048 - £29,000 less than a year ago. | It says prices fell by another 2.5% in December taking the average house price down to £153,048 - £29,000 less than a year ago. |
| The building society says that as prices have now fallen for 14 months in a row they are 18% lower than their peak in October 2007. | The building society says that as prices have now fallen for 14 months in a row they are 18% lower than their peak in October 2007. |
| The Nationwide's chief economist said last year was a "year of turmoil". | The Nationwide's chief economist said last year was a "year of turmoil". |
| "The disruption in the financial markets worsened throughout 2008 and had larger implications for the real economy than we anticipated a year ago," said Fionnuala Earley. | "The disruption in the financial markets worsened throughout 2008 and had larger implications for the real economy than we anticipated a year ago," said Fionnuala Earley. |
| "We did not anticipate the speed of house price falls or the extent of the global and domestic economic slowdown," she added. | "We did not anticipate the speed of house price falls or the extent of the global and domestic economic slowdown," she added. |
| Recession | Recession |
| The Nationwide's survey confirms last week's report from the Halifax which also said that prices had dropped by 16% in 2008. | The Nationwide's survey confirms last week's report from the Halifax which also said that prices had dropped by 16% in 2008. |
| Until the economy and the labour market stabilise, it is hard to imagine households becoming upbeat about the immediate future for house prices Fionnuala Earley, Nationwide | Until the economy and the labour market stabilise, it is hard to imagine households becoming upbeat about the immediate future for house prices Fionnuala Earley, Nationwide |
| Last year saw the biggest annual house price drop on record, which was prompted by a sharp fall in the availability of mortgage funds from lenders who had been hit by the international credit crunch. | Last year saw the biggest annual house price drop on record, which was prompted by a sharp fall in the availability of mortgage funds from lenders who had been hit by the international credit crunch. |
| This led to a sudden drop of in demand from buyers at a time when house prices had already reached record levels, as a result of which sales are currently down by 60%. | This led to a sudden drop of in demand from buyers at a time when house prices had already reached record levels, as a result of which sales are currently down by 60%. |
| With mortgage approvals suffering an even bigger fall, sales and prices are expected to continue to drop for the time being. | With mortgage approvals suffering an even bigger fall, sales and prices are expected to continue to drop for the time being. |
| "Prices have further to fall before significant numbers of buyers will be willing to return to the market," said Ms Earley. | "Prices have further to fall before significant numbers of buyers will be willing to return to the market," said Ms Earley. |
| And she warned that economic recession would drag the housing market down further. | And she warned that economic recession would drag the housing market down further. |
| "Until the economy and the labour market stabilise, it is hard to imagine households becoming upbeat about the immediate future for house prices and this will hinder the pace of recovery," she said. | "Until the economy and the labour market stabilise, it is hard to imagine households becoming upbeat about the immediate future for house prices and this will hinder the pace of recovery," she said. |
| "In addition, the wider economic recession also impacts negatively on household expectations of future incomes." | "In addition, the wider economic recession also impacts negatively on household expectations of future incomes." |
| Regional changes | |
| The biggest fall in house prices last year was in Northern Ireland where prices dropped by 34.2%, partly reversing the huge house price boom seen in the previous few years. | |
| In Scotland however, prices were much more resilient, falling by only 8.1%. | |
| Elsewhere in England and Wales the drop in prices was more uniform, ranging from 11% in Northern England to 16.6% in East Anglia. | |
| Prices are still highest in London where they average £257,963. |