Housing slump ‘gathering pace’

The UK’s housing sector slump has gathered pace in recent weeks, according to the latest data from the Nationwide Building Society.

Average house prices are now 4.4 per cent below the corresponding figure for 12 months ago and the speed at which typical property prices have fallen has surprised many leading experts.

Would-be first-time buyers are struggling to find a mortgage deal and homeowners are finding it difficult to meet their debt management demands as the picture for the housing sector becomes increasingly gloomy, Nationwide suggests.

The building society’s figures show that the average house price in the UK fell by around £5,000 over the course of May, which amounts to a record monthly slump.

Fionnuala Earley, Nationwide’s chief economist, remarked: “The pace of house price falls accelerated in May as more weak economic news added to the gathering momentum of negative sentiment about the housing market.”

According to Credit Action, the typical British family is currently paying out £3,765 each year to service the interest on their debt management burden.

Written by Lucy Matthews