House prices are falling, so said the Nationwide Building Society on Friday, after it's figures showed prices dropping for the fifth consecutive month.
The gloomy outlook on house prices coincided with new data showing consumer confidence at a 15-year low and weaker household spending, raising the risk of severe economic slowdown.
Annual house price inflation fell to 1.7 per cent, its lowest in 12 years, Nationwide said, and unless the housing market does better in April than this month, the inflation measure will dip below zero in a month’s time.
With Britain facing the likelihood of house prices falling year- on-year and mortgages becoming harder to acquire, the prospect has risen of a US-style vicious circle of falling prices, ever more pessimistic expectations, falling demand and even more cautious lending. read more »