Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
“The price of a typical house fell by 0.4% in April. This reverses some of the rise seen in March, but is
in line with our expectations, given the current economic conditions. April’s decline leaves the average
price of a typical house at £151,861, down 15% from 12 months ago. The 3-month on 3-month rate
of change, generally a smoother indicator of the short-term trend in prices, improved to -3.1% in April
from -4.1% in March.
Budget measures unlikely to boost housing market
“The chancellor announced several measures aimed at boosting the housing market in his Budget.
The scheme for government guarantees for new, high-quality residential mortgage backed
securities are welcome and may help to boost the amount of mortgage credit available. However,
since the availability of credit is only part of the reason why the housing market is in the doldrums it is
unlikely to lead to a swift turnaround in its fortunes. Lenders have already indicated that the
availability of credit is less of an issue than it has been, but at the same time expect that the demand
for secured lending will fall further. Given the weakness of the economy and the expected further
increase in unemployment this comes as no surprise.
Editors Note: April saw a surge of sales agreed but little movement up or down in prices. Estate agents in Norwich are reporting a lack of new instructions to replace the stock that has been sold.
