House prices falling almost £80 a day, Nationwide figures show
House prices are losing almost £80 of their value a day as prices fall a record 15 per cent in a single year.
The average house price has dropped by £27,000 in the past year, says Nationwide
The latest figures from Nationwide means home owners are now losing more money through falling prices than they are earning at work every day.
The average house prices has had more than £27,000 knocked off its price in the past year, while the Office for National Statistics shows the average salary is just £24,000.
The housing survey shows that house prices have fallen every month for the past year.
The latest decline of 14.7 per cent in October means the average price has now dropped to £158,872, compared to £186,044 a year ago.
It is further misery for millions of hard-working home owners who are struggling to pay rising mortgage costs.
Nationwide expects the decline in house prices to continue into next year as the looming recession forces some home owners into selling their properties.
Fionnuala Earley, Nationwide's chief economist, said there is likely to be "a bumpy ride ahead".
"A looming recession and continued financial market instability have uncomfortable implications for the housing and mortgage markets, and will undoubtedly affect the pace of recovery in house prices," she said.
The survey also said sellers refuse to lower asking prices and buyers remain reluctant to trade because they don't believe the market has found a bottom.
Economist predict that the Bank of England will cut interest rates to 1 per cent to help stave off a deep and prolonged recession.
However, they said this is unlikely to stimulate the housing market and will fail to ease the lack of affordable mortgages affordable.
This it because Libor, the rate at which banks to lend to one another, remains high and mortgage rates available to consumers will continue to reflect this.
Howard Archer, an economist at Global Insight, said: "Even though we expect the Bank of England to cut interest rates…this is unlikely to lead to any quick pick up in the housing market's fortunes."
Ed Stansfield, a property economist at Capital Economics, said: "With unemployment rising and expectations that house prices have much further to fall still widespread, lower interest rates will not stimulate housing demand. Lower interest rates will also do nothing to loosen mortgage lending criteria.
And he added: "Despite the fact that house prices are falling at their fastest pace on record, the housing market remains fundamentally overvalued by almost any measure. So as the economic downturn gathers pace, we still think that there is plenty of scope for the rate of house price deflation to accelerate."
House prices are losing almost £80 of their value a day as prices fall a record 15 per cent in a single year.
The average house price has dropped by £27,000 in the past year, says Nationwide
The latest figures from Nationwide means home owners are now losing more money through falling prices than they are earning at work every day.
The average house prices has had more than £27,000 knocked off its price in the past year, while the Office for National Statistics shows the average salary is just £24,000.
The housing survey shows that house prices have fallen every month for the past year.
The latest decline of 14.7 per cent in October means the average price has now dropped to £158,872, compared to £186,044 a year ago.
It is further misery for millions of hard-working home owners who are struggling to pay rising mortgage costs.
Nationwide expects the decline in house prices to continue into next year as the looming recession forces some home owners into selling their properties.
Fionnuala Earley, Nationwide's chief economist, said there is likely to be "a bumpy ride ahead".
"A looming recession and continued financial market instability have uncomfortable implications for the housing and mortgage markets, and will undoubtedly affect the pace of recovery in house prices," she said.
The survey also said sellers refuse to lower asking prices and buyers remain reluctant to trade because they don't believe the market has found a bottom.
Economist predict that the Bank of England will cut interest rates to 1 per cent to help stave off a deep and prolonged recession.
However, they said this is unlikely to stimulate the housing market and will fail to ease the lack of affordable mortgages affordable.
This it because Libor, the rate at which banks to lend to one another, remains high and mortgage rates available to consumers will continue to reflect this.
Howard Archer, an economist at Global Insight, said: "Even though we expect the Bank of England to cut interest rates…this is unlikely to lead to any quick pick up in the housing market's fortunes."
Ed Stansfield, a property economist at Capital Economics, said: "With unemployment rising and expectations that house prices have much further to fall still widespread, lower interest rates will not stimulate housing demand. Lower interest rates will also do nothing to loosen mortgage lending criteria.
And he added: "Despite the fact that house prices are falling at their fastest pace on record, the housing market remains fundamentally overvalued by almost any measure. So as the economic downturn gathers pace, we still think that there is plenty of scope for the rate of house price deflation to accelerate."