Nationwide has reported in its yearly housing survey a revision in its forecasts for house price growth of 3% to a fall of 0.4%.
Our view
Prices have continued to rise overall over the last year despite the recent slow down. We do not believe this is enough to encourage the Bank of England Monetary Policy Committee to relax with interest rates. Yes we may get some stability for a few months, certainly over Christmas people may be spending money elsewhere and thinking about other issues. However, this will eventually start to climb back up - expect some more interest rate tweaks.