Nationwide Forecasts Further House Price Falls

The latest report published by Nationwide, one of the leading British building societies, suggests that house prices in the country will continue to fall in 2011.

However, many potential homeowners will be deterred from the property market because of overall economic uncertainty and government cuts in particular.

The organisation, however, warned that those planning to buy a property next year should next expect house prices to fall as much as they did in 2008. Sellers will not feel desperate to sell their houses because mortgage interest rates are low and repossessions level is not high either.

Commenting on the findings, Mr. Beale of Nationwide, said that "in the housing market, conditions have weakened noticeably over the last six months, with both a decline in buyer demand and a modest downward trend in house prices."

The figures released by Nationwide are supported by data published earlier this month by British Bankers' Association and other financial organizations.