http://www.tennysonsuitehomes.co.uk/news.phpThe latest news from Tennyson Suite Homeshttp://www.tennysonsuitehomes.co.uk/news.php?id=17House prices 'fell 15.9% in 2008' Prices and sales are likely to keep on falling House prices fell by 15.9% last year, according to the latest survey by the Nationwide building society. It says prices fell by another 2.5% in December taking the average house price down to £153,048 - £29,000 less than a year ago. The building society says that as prices have now fallen for 14 months in a row they are 18% lower than their peak in October 2007. The Nationwide's chief economist said last year was a "year of turmoil". "The disruption in the financial markets worsened throughout 2008 and had larger implications for the real economy than we anticipated a year ago," said Fionnuala Earley. "We did not anticipate the speed of house price falls or the extent of the global and domestic economic slowdown," she added. Downturn The Nationwide's survey confirms last week's report from the Halifax which also said that prices had dropped by 16% in 2008. Last year saw the biggest annual house price drop on record, which was prompted by a sharp fall in the availability of mortgage funds from lenders who had been hit by the international credit crunch. This led to a sudden drop of in demand from buyers at a time when house prices had already reached record levels, as a result of which sales are currently down by 60%. With mortgage approvals suffering an even bigger fall, sales and prices are expected to continue to drop for the time being. "Prices have further to fall before significant numbers of buyers will be willing to return to the market," said Ms Earley. Recession Ms Earley warned that the developing economic recession would drag the housing market down further. FROM THE TODAY PROGRAMME More from Today programme "Until the economy and the labour market stabilise, it is hard to imagine households becoming upbeat about the immediathttp://www.tennysonsuitehomes.co.uk/news.php?id=17http://www.tennysonsuitehomes.co.uk/news.php?id=16House sales 'are still falling' Sales have fallen by more than half in the past year Property sales fell even further in November, according to the latest survey from the Royal Institution of Chartered Surveyors (Rics). The number of sales per estate agency fell during the three months to November to 10.6, down from the 10.9 sales per agency reported a month ago. Rics said this was the lowest level since its survey started in 1978. Sales have slumped by more than half this year due to the credit crisis, driving down prices as a result. "Many are starting to see the current market as an opportunity to purchase a previously unaffordable property despite the worsening economic picture," said Rics spokesman Jeremy Leaf. "But, unless people feel relatively confident about their job prospects, they're unlikely to even try to obtain mortgage finance unless of course trading down or seeking to release capital." "Vendors still have to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions," he added. Interested buyers Rics suggested there were some shafts of light in the gloom in its latest survey of the UK housing market. The rise in interest reflects both the drop in asking prices and recent cuts in interest rates Rics Its members said interest among potential buyers had risen for the seventh month in a row and was now positive for the first time since October 2006. Those chartered surveyors who had seen a rise in the number of buyers' enquiries now outstripped by 14% those who had seen enquiries fall. "The rise in interest reflects both the drop in asking prices and recent cuts in interest rates," said Rics. . http://www.tennysonsuitehomes.co.uk/news.php?id=16http://www.tennysonsuitehomes.co.uk/news.php?id=15House prices still falling fast The Halifax, part of HBOS, is being taken over by Lloyds TSB House prices fell another 2.6% in November, the Halifax says. According to its latest survey, that increased the annual rate of house price falls to 14.9%. The Halifax said that on its calculations, the average property in the UK was now valued at £163,605, a level last seen in July 2005. Last week, the Nationwide building society said the pace of house price decline had eased off, with prices down 13.9% in the year to October. "The combination of high house prices in relation to earnings, constraints on householders' incomes and spending power, and the decline in the availability of mortgage finance since the summer of 2007 has curbed housing demand," said the Halifax's chief economist, Martin Ellis. The lender's calculation suggests that the average house price has now dropped by £31,485 in the past 12 months. It calculates the annual rate of decline by comparing the average house price over the past three months with the average for the same three-month period the year before. A straightforward monthly year-on-year comparison suggests that prices may have fallen even faster, by 16.1%, although the lender argues that this approach can be distorted by short-term price fluctuations. http://www.tennysonsuitehomes.co.uk/news.php?id=15