House Price Fall Nationwide Report - Money Markets Pressure on Mortgage Funding

It appears the Nationwide reported near 1% fall in house prices, averaged accrod the UK may be perpetuated by a lack of funding in the markets

Average net mortgage lending is, or has been around £9 billion per month over the past year or so whilst retail over the counter deposits have only been growing at around £6 billion per month

Whilst this shortfall remains, mortgages will get even more difficult to obtain and will be more expensive and both items will obviously make selling a house more difficult, so pushing down prices

Some forecasts say a drop of 7% through to the end of 2008 though we suspect it might be more, even if the Bank of England did pump some money in to the system and/or reduce rates we don't see it being enough to alleviate the drop