Nationwide-House prices fell 0.2 percent in April

Published 04th May 2011

House prices unexpectedly fell in April after two months of strong growth, pointing to a trend of stagnant prices as household spending remains under pressure, mortgage lender Nationwide said on Wednesday.

Nationwide said house prices dropped by 0.2 percent last month after a 0.5 percent rise in March, the biggest seasonally adjusted fall since November last year and one that means average house prices are now 1.3 percent lower than a year ago.

"The market is fairly static, as has been the case since last summer," said Nationwide's chief economist, Robert Gardner.

"There is still little evidence to suggest that price declines will accelerate in the months ahead," he added.

"Household budgets remain under pressure, but labour market conditions have shown a modest improvement in recent months."

Gardner said gradually falling unemployment should support house prices in 2011, although a modest drop in prices over the year could not be ruled out.

Economists polled by Reuters last week had expected house prices to continue rising in April, increasing by 0.2 percent, and saw a smaller annual fall of 0.7 percent. The actual annual fall in April was the biggest since January.

Source: ' Reuters '

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