United Kingdom: Home prices drop in December
December 30, 2011
In December, the average price of a typical property in the U.K. dropped a seasonally adjusted 0.2% over the previous month to GBP 163,822, according to data collected by the Nationwide Building Society (NBS). The reading contrasted the 0.4% increase observed in November and market expectations that had home prices adding 0.1%. On an annual basis, house prices increased 1.0%, which was below the 1.6% increase seen in November. Going forward, deteriorating prospects for the U.K. economy bode ill for a rebound in housing prices. In fact, the NBS believes that ?the housing market in 2012 looks likely to be characterised by low levels of activity once again, with prices moving sideways or modestly lower over the course of the year?.