House prices in the UK fell 2.3% in February and by 17.7% in the three months to February compared with a year earlier. Halifax Chief Economist said “Continuing pressures on incomes, rising unemployent and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are, however, likely to mean that 2009 will be another difficult year for the housing market.”
He’s bang on. We’ve unfortunately a lot further to go. I personally wouldn’t be surprised to see house prices off 30-40% from the highs before this is over.
Cable is back down at 1.4170, the earlier pop over 1.42 having proved short-lived.