INDUSTRY NEWS
Home Prices in the U.K. Fall By Biggest Amount in 17 Years
May 29, 2008
Source:The Wall Street Journal
London--U.K. home prices showed their largest monthly drop ever in May, the Nationwide Building Society said Thursday.
Damaged by ongoing credit market issues and a slow economy, home prices dropped 2.5 percent in May--the biggest fall since Nationwide began its index in 1991, according to The Wall Street Journal.
On a year-to-year basis, prices declined 4.4 percent, which was the biggest decline since 1992.
The median home price fell from £178,555 ($352,449) in April to £173,583 ($343,712) last month--the seventh consecutive monthly price decline. However, prices are still 5 percent higher than in May 2006 and 10 percent above May 2005 prices.
Still, the current housing market--which began to slow last year after the Bank of England approved five rate increases and the credit crunch reached the mortgage industry--could prompt the Bank of England's Policy Committee to lower rates sooner than predicted, the Journal said.
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