"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.
The governments massive fiscal boost may prevent the downturn in economic activity being as severe as would otherwise be the case but it will not prevent a sharp jump in unemployment over the coming year. More action is now required from the Bank of England. RICS expects a further cut in base rates next week. The real issue for the property market remains the collapse in transactions rather than the necessary adjustment in prices with the collapse in MFI being the latest evidence of the spill over from the dearth in home sales to the high street."
