House prices 'drop 15%'
Property professionals
30th October 2008
Over the last year, house prices have fallen by 15 per cent, new data has shown.
According to Nationwide, the average price of a property is now £30,000 lower than last year.
Nationwide's chief economist Fionnuala Earley said a drop in the level of transaction was behind the fall in prices.
"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.
Ms Earley added that the speed of economic slowdown means it is likely that interest rates will be cut sharply.
Housing continues to be the country's most valuable asset at £4 trillion, however, according to figures from the Office of National Statistics.
The figure represents 60 per cent of the UK's net worth - ten per cent up on last year.
