UK property prices unchanged in October, latest index data shows according to the latest index from the Nationwide Building Society
03-12-2012
 It means that prices are just 1.2% below the level prevailing 12 months ago but the annual rate of house price inflation has remained in negative territory for nine months in a row. The outlook is poor with Nationwide expecting prices to remain broadly flat or even decline in 2013.
Robert Gardner, Nationwide's chief economist said that the pace of decline remained extremely slow but added that the predominant theme remains one of stability. He pointed out that the ability of the economy to generate jobs will remain a key determinant of housing market conditions in the period ahead. The fact that the economy is expected to gradually gather pace in the years ahead should provide continued support to employment levels. However, the fact that employment is above pre-crisis levels while economic output is still around three percentage points below its 2008 level, suggests that the pace of job creation may not be maintained at its recent rapid pace,ђ said Gardner. Similarly, the fact that the unemployment rate remains elevated suggests that competition for jobs will remain intense, maintaining downward pressure on wage growth. This supports our view that house prices are likely to remain broadly flat or decline modestly over the next 12 months,ђ he added. |
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