Housing market slowdown gathers pace

The housing market appears to have taken a turn for the worse over the last month. House prices have now fallen on the Nationwide, Halifax, Hometrack, RICS and Rightmove measures. Indeed, on the Halifax measure they have fallen by a total of 2.4% in the last three months. What’s more, the recent weakening in the activity indicators suggests that further falls in house prices are likely. We now think that house prices will fall by 5% this year and by up to 10% in 2009. A weaker housing market will contribute to what is shaping up to be a couple of weak years for the UK economy.