Nationwide forecasts subdued housing market in 2006

Nationwide says the strength of the economy is an important driver of the housing market and that 2005 was a testing year, as the economy slowed rapidly and there was significant uncertainty about how deep the slowdown would be. But in the last two months more encouraging data about the economy has emerged, although Nationwide says it only suggests a tentative recovery so far, as high fuel prices, higher interest rates and high levels of household debt all took their toll on consumer spending which is a major contributor to the economy. Although the labour market has proved very resilie...