The rate at which house prices are falling eased ‘significantly’ this month but a market recovery still remains some way off, Nationwide Building Society said today.
At the same time, the annual rate at which prices are falling eased to 13.9%, compared with a year-on-year drop of 14.6% a month earlier.
First good news on house prices this year
It is the first improvement in annual house price inflation since October last year, when the year-on-year rate at which prices were rising first began to decline.
The average home now costs £158,442, £25,000 less than a year ago, but still £25,000 higher than in November 2003.
Which? Money Editor Martyn Hocking said: ‘While a slow down will be welcomed by homeowners we’re still a long way from seeing a turning point in the housing market. The interest rate cuts announced in the pre Budget report this week should help existing borrowers, but with the economy entering recession and the lack of mortgage deals first time buyers will still struggle to get on the property ladder.’
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