(1888PressRelease)
November 20, 2007 - The bank has published its housing forecast for 2008 and predicted that the market would experience a "significant slowdown", with growth slumping to zero per cent.
It points to the fact that almost every house price index in recent months has showed that the market is slowing and credit conditions are tightening.
"Momentum is now fading and a number of factors suggest that house price inflation will drop from its current rate of 9.7 per cent to zero per cent by this time next year," said Nationwide economist Fionnuala Earley.
"The main reasons for this more subdued outlook lie on the demand side of the market, where a slowing economy, tighter credit conditions, stretched affordability for first-time buyers and lower house price expectations appear likely to reduce the level of activity.
"The supply-side of the market will still be characterised by widespread housing shortages, in spite of government targets to increase house building," she added.
Fast property sale expert Julian King adds, "The number of transactions next year will slow significantly.
"The lack of buyers, because of the reasons given by Nationwide will make it increasingly difficult for homeowners to achieve a quick sale.
"As the length of time it takes to sell property increases, many will be looking for alternative sales process than through the open market route. For many, a quick property sale is the only solution available".
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm. The Sussex-based firm also arrange a Sell and Rent back Solution where the homeowner can sell their property, but remain living there as a tenant for as long as desired.
The latest Nationwide House Price Index put monthly price inflation at 1.1 per cent in October.
