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| Version 3 | Version 4 |
|---|---|
| House prices 'continue to slide' | House prices 'continue to slide' |
| (about 1 hour later) | |
| The slide in house prices continued in January, falling by 1.3% according to the Nationwide, the UK's largest building society. | |
| The mortgage lender said the rate of price falls had eased slightly when compared with December's 2.5% slide. | The mortgage lender said the rate of price falls had eased slightly when compared with December's 2.5% slide. |
| But the decline took the annual rate of fall in house prices to 16.6%, from 15.9% in December. | |
| Amid rising unemployment, job security worries were likely to be putting people off buying a new home, it said. | Amid rising unemployment, job security worries were likely to be putting people off buying a new home, it said. |
| The index - based on prices agreed after a survey by Nationwide's mortgage customers - put the average house cost at £150,501. | |
| That is down from £153,048 a month ago and £35,543 below the peak of October 2007. | |
| 'Hesitant' | 'Hesitant' |
| "The deepening economic recession and financial market turbulence continued to weigh on housing market sentiment and activity," said Nationwide's senior economist, Martin Gahbauer. | "The deepening economic recession and financial market turbulence continued to weigh on housing market sentiment and activity," said Nationwide's senior economist, Martin Gahbauer. |
| "While the fall in house prices and the parallel reduction in interest rates has probably made many households curious about what is currently available in the market, many are likely to be hesitant to commit in a recessionary environment of rising unemployment and increasing uncertainty about future incomes," he said. | "While the fall in house prices and the parallel reduction in interest rates has probably made many households curious about what is currently available in the market, many are likely to be hesitant to commit in a recessionary environment of rising unemployment and increasing uncertainty about future incomes," he said. |
| Though the number of enquiries from would-be buyers was "recovering quite strongly", this was not translating into mortgage approvals, Mr Gahbauer added. | Though the number of enquiries from would-be buyers was "recovering quite strongly", this was not translating into mortgage approvals, Mr Gahbauer added. |
| Nationwide said the housing market was unlikely to improve until the economy stopped shrinking, with continued restrictions of credit reducing the amount of people taking out mortgages. | Nationwide said the housing market was unlikely to improve until the economy stopped shrinking, with continued restrictions of credit reducing the amount of people taking out mortgages. |
| The UK economy is now deemed to be in recession having recorded two consecutive quarters of negative growth. | The UK economy is now deemed to be in recession having recorded two consecutive quarters of negative growth. |
| The Bank of England has been cutting the base rate sharply in recent months in an effort to stimulate the economy. | The Bank of England has been cutting the base rate sharply in recent months in an effort to stimulate the economy. |
| Even though prices are looking attractive now, the question is will people want to commit to a purchase in such an uncertain economic climate? Toby GoldblattRubii.co.uk House price surveys explainedRecession tracker: House prices | |
| However, while there was "little prospect for noticeable improvement in the short term", historically it took time for interest rate cuts to filter through to the wider economy, Nationwide said. | However, while there was "little prospect for noticeable improvement in the short term", historically it took time for interest rate cuts to filter through to the wider economy, Nationwide said. |
| Gloomy messages | Gloomy messages |
| Until the lenders started to make mortgages more affordable and readily available, all signs of interest among potential buyers was "ultimately academic", said David Smith, senior partner at Dreweatt Neate estate agent. | Until the lenders started to make mortgages more affordable and readily available, all signs of interest among potential buyers was "ultimately academic", said David Smith, senior partner at Dreweatt Neate estate agent. |
| "While there are signs of interest in the market, with interest rates and house prices very low, this amounts to nothing in the absence of credit." | "While there are signs of interest in the market, with interest rates and house prices very low, this amounts to nothing in the absence of credit." |
| Meanwhile, the gloomy messages coming from the IMF and out of the World Economic Forum in Davos suggested that the recession could last for some time, said Toby Goldblatt of financial adviser search engine Rubii.co.uk. | Meanwhile, the gloomy messages coming from the IMF and out of the World Economic Forum in Davos suggested that the recession could last for some time, said Toby Goldblatt of financial adviser search engine Rubii.co.uk. |
| "Even though prices are looking attractive now, the question is will people want to commit to a purchase in such an uncertain economic climate?" | "Even though prices are looking attractive now, the question is will people want to commit to a purchase in such an uncertain economic climate?" |