The January 2012 house price index from Nationwide Building Society has reported that UK property prices continued to fall – with the average UK house price falling by 0.2% in January to £162,228.
Nationwide’s chief economist Robert Gardner believes that house prices throughout the UK are likely to remain fairly static in the coming months, due to the lack of new houses coming onto the market.
”With the flow of properties coming on to the market still more of a trickle than a flood, house prices are likely to continue to move sideways or only modestly lower in the months ahead.”
The reasons for the static house prices, he added, were primarily the need for a larger deposit due to stricter lending criteria, and the continued lack of confidence in the economy and property market in general.