We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedChange Management

House prices record biggest fall since 2009


Prices fell more than expected in July, according to Nationwide

Article comments

House prices recorded a bigger than expected drop in July and fell at the fastest yearly rate last month since 2009, according to the latest data on Wednesday, as deepening double dip took its toll on the property market.

Data from mortgage lender Nationwide showed a 0.7 percent decline in house prices in July. Prices are now 2.6 percent lower than a year ago - their biggest annual fall since August 2009.

The economy entered recession at the end of last year, and shrank a bigger-than-expected 0.7 percent in the second quarter of 2012, as bad weather and an extra public holiday added to the effects of public spending cuts and the debt crisis in the euro zone.

"The weaker price trend observed in recent quarters is unsurprising, given the disappointing performance of the wider economy," said Nationwide's chief economist Robert Gardner.

House prices and the rest of the economy were only likely to recover modestly in the coming quarters, as the euro zone crisis would limit gains from more Bank of England stimulus and a government programme aimed at increasing mortgage and business lending, Nationwide added.

Earlier this week, the Bank reported that mortgage approvals and lending - leading indicators for house prices - fell to an 18-month low in June.

House prices are now 13 percent below their 2007 peak, compared to a decline of more than 15 percent in the US and nearly 25 percent in Spain, Nationwide said.

Along with a lack of house building before the financial crisis, this resilience was probably also due to the relatively small rise in unemployment since the financial crisis, Nationwide said.

photo credit: Reuters

Share:

Comments

House prices record biggest fall since 2009
Change Management

How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale valuemore ..


European IPO markets reaches pre-recession levels

At least 15 IPOs with over €250m proceeds are planned before the end of the summer, PwC saysmore ..

BG Group relocates trading HQ to Singapore

Oil and gas company says it wants to get closer to “high growth” LNG marketsmore ..

Chicago Sun-Times first major US paper to accept bitcoins

Backed by Coinbase, the move is part of a digital-first strategymore ..

Will the new tax breaks help Britain’s VFX and film industries?

Alex Hope, MD of Double Negative, explains what the autumn statement really means for UK VFXmore ..

How to improve your annual report

Regulators recognise the value of storytellingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *