House prices fall again in April as house buyers remain cautious

The chief economist at Nationwide has recently stated that the consumers in the UK are remaining cautious and that this is no great surprise. Over the past six months the economy has shrunk and the conditions in the labour market are still bad.

In April house prices fell for the first time in nearly 6 months, which was largely expected because the stamp duty exemption which had been implemented by the government, came to an end. It is estimated that in April the average price of homes in the UK fell to just under £221,000. This is down around is 0.7 percent compared with figures from the same time last year.

It is thought that the Bank of England is going to leave the door open for the possibility of more economic stimulus to be added to the economy in the UK, as the European debt crisis begins to have an effect. This is something that is keeping the recovery of the UK economy at bay.

One of the most popular mortgage deals on the market as a two-year fixed-rate option. A recent survey has suggested that the average amount charged for this type of mortgage has risen by around 0.2 percent between March and April this year. This is the most significant rise in the cost of taking out a mortgage in three years and is going to have a serious effect on the housing market. Despite mortgages becoming more expensive, home sellers have indicated that they are not likely to reduce the asking price of homes.