Another drop in house prices for October

October has seen another fall in house prices in the UK according to recently released figures. The figures have been released by Nationwide, and the High Street lender has said that the dearth of buyers in the UK has resulted in continued falls with house prices.

The average property price in the UK is said to have fallen by £2400 in October, with the Nationwide’s house price index falling by 0.7 percent over the course of the month due to buyers steering clear of the market. Over the course of the month the average property price has now fallen to £164,381.

Over recent months the pressure on house prices in the UK has been mounting, as buyers have shied away from the market for a variety of reasons. There are many would be buyers that simply cannot get a mortgage due to current restrictions in the market, and many others that could get a mortgage but cannot afford the high deposit levels that lenders are asking for.

Another factor that is likely to have a serious impact on buyer interest and property prices is the spending Review recently outlined by the coalition government. The sweeping spending cuts that have been proposed will have raised concerns amongst households and individuals who are now in fear of losing their jobs due to the cuts in the public sector, which could also have a knock on effect on the private sector.

An economist from Nationwide said: ‘If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and minus 1% by the end of 2010. This would compare to a rate of 5.9% at the end of 2009.’

Tags: finance, Nationwide Building Society, lenders, buyer, Business Finance