Housing market to be 'pressurised' by economic climate

Despite news from Nationwide this week that house prices falls are moderating, a leading expert has suggested that there will be no quick upturn.

Fionnuala Earley, Nationwide's chief economist, states that the conditions in the market are not conducive to a swift upturn, despite prices falling by 0.4 per cent in November.

A "weakening" of the labour market means that demand for property will be dampened.

"With prices falling at their current rate there is also little incentive for new borrowers to hurry into the market, she added.

However, Homebuilding & Renovating Magazine editor Jason Orme has suggested that things are a little rosier for the self build sector as cheaper plots are now more readily available.

Mr Orme has even advised self builders that they could grab a bargain plot, with some developers actively trying to offload them.