UK: House Prices Fall at Fastest Pace in 25 Years
December 5th, 2008Via: Times:
British house prices tumbled at a record 16.1 per cent in November, marking the sharpest drop in property values for a quarter of a century.
Figures released this morning by Halifax revealed that prices fell 2.6 per cent in November compared with October, and are 16.1 per cent lower than in November 2007.
The year-on-year decline is deeper than falls recorded during the last recession in the early 1990s, and is the biggest drop since 1983.
The shock fall emerged just hours before the Bank of England’s Monetary Policy Commitee (MPC) cut the interest rate again by 1 per cent to 2 per cent, after last month reducing borrowing costs by 1.5 per cent to 3 per cent.
The reduction is likely to be accompanied by a rate cut by the European Central Bank, which is predicted to fall by 50 basis points in the 15-nation eurozone.
