House prices decline again

The monthly Nationwide house price survey out today shows a 0.4% fall in April, although the pace of decline has slowed.

The news is a blow to the beleagured housing market after HMRC’s figures recently showed an increase in the number of property transactions.

Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand – so exchange rates are unlikely to improve.

The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.