The Nationwide Building Society housing data for April reveals that house prices fell by just over one percent during April, taking them to a lower price point than the same time last year.
This latest house price fall takes the market to a position where, for the first time in ten years, there has been a year on year decrease. A Nationwide Building Society spokesman thought that the falling price of property showed how lack of affordability and more difficult access to mortgages was really pressing the market.
They also went on to say that, with the market falling as it has been doing it may prompt further base rate cuts by the Bank of England. The Nationwide Building Society figures show a steep fall in property transactions over the last six months or so and this latest data suggests something really needs to be done to stimulate activity once more.
According to the Abbey National falling house prices may be an interesting opportunity for some homeowners who can see the chance to get a bigger property at a smaller price.
The figures held by Abbey National indicate somewhere in the region of 2 million homeowners are considering a move as house prices drop. Around 1.2 million of these people are hoping to trade up to a larger house, feeling they will get a relative bargain.
As a spokesman for Abbey National Mortgages reaffirmed, a market where house prices are falling is not always bad news. It creates opportunities and bargains that some people can make the most of.
The largest lender in the UK, the Halifax, is cutting some of its mortgage interest rates for new customers as of today. This is the third mortgage rate cut the Halifax has announced this month.
Sixteen different mortgage deals will see cuts to their rates, with some being reduced by up to 0.3 percent, helping new mortgage customers get into a property by reducing their monthly repayments. A Halifax spokesman explained that they were keeping up with recent changes in interest rates by other lenders, ensuring they are competitive. 2 year fixed rate mortgage rates for example were unchanged since they had been reduced only a week ago.
In a market where property sales are down by about half compared with last year and mortgage approvals are down by over two thirds it remains to be seen whether these changes will significantly impact on the housing market, though the Halifax will surely be hoping it does.
