Home Prices in the U.K. Fall By Biggest Amount in 17 Years
- May 29, 2008
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.