House prices fall again in April as recession crushes consumers
HOUSE prices fell again in April, Nationwide revealed yesterday, as economists warned the new recession will keep the market very weak.
Prices fell 0.2 per cent last month to an average of £164,134, following a one per cent fall in March.
That brings prices down 0.9 per cent on the year, in part because the rush to buy houses before the stamp duty holiday expired in March has now dried up.
“This provided a temporary boost to house prices in early 2012 as buyers brought forward purchases that would otherwise have taken place later in the year,” said Nationwide’s Robert Gardner.
“This effect should fade in the months ahead, and measures such as the government’s NewBuy scheme should provide some support to buyer demand. However, the challenging economic backdrop suggests that a significant acceleration in prices or activity is unlikely in the near term.”
Other analysts went further. Howard Archer from IHS Global Insight forecasts a three per cent fall this year, arguing consumers are under sustained pressure.