The latest Nationwide figures showed only a 0.4% fall in November. Given the horrendous news coming out about the housing market this was almost something to celibrate. So desperate are we for any hint of the positive.
Where do professional landlords go for their landlord insurance ?
Commenting on the Nationwide house price index, Simon Rubinsohn RICS chief economist said:
"Data released this morning from the Nationwide Building Society shows an easing in the pace of decline in house prices in November.
It is however improbable that this marks a turning point in the cycle. Data from the British Bankers Association published on Tuesday indicated mortgage approvals continuing to fall while the increasingly negative newsflow from the economy suggests that interest from potential buyers could weaken further over the coming months.
Don't break out the champagne yet!
Before breaking out the champagne Landlords should be aware of the limitations of house price data from the big mortgage companies in the current market. These figures which are based on mortgage approvals. What they don't include are the increasing volumes of sales that are going though the auction rooms or are opportunistic cash purchases made by professional investors. These will not show up in either the Nationwide and Halifax figures. These purchases will often go significantly below the levels in the rest of the market. I suspect at the moment both sets of figures underestimate the falls particularly in certain parts of the market such as new build apartments where a glut in supply is exacerbating falls in values.
To find out how the different organisations measure house prices have a look at this previous article.
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