Nationwide predicts static house prices in '08

The building society says various economic factors are constraining affordability and a significant slowdown is likely. Nationwide has predicted total growth in the UK housing market will fall from its current rate of 9.7% to 0% by the end of 2008. Fionnuala Earley, chief economist at Nationwide, says factors such as a slowing economy, stretched affordability, righter credit conditions and lower demand for buy-to-let will all constrain house price growth. “The supply-side of the market will still be characterised by widespread housing shortages, in spite of government targets to increase...