The UK’s largest building society said in its latest report that it expected prices to continue to fall throughout 2009. Nationwide Building Society predicted that prices would continue to fall by an average of 1 – 1.5 percent per month until at least the beginning of 2010.
For the past year, UK property prices have dropped 14.6 percent according to the society’s numbers, with the average home price nearly £30,000 less than it was a year ago. Chief Executive Graham Beale said that interest rate cuts will help in the months to come: “Rate cuts will help to minimize payment difficulties and alleviate payment shock as borrowers reach the end of their existing deals.”
“Reducing prices will improve affordability, which should bring about a recovery in the first-time buyers’ market.”
The lender indicated that it is well placed to survive the financial downturn, although it had taken some losses on the failure of US banks.
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