According to a report by Nationwide Building Society, home prices in the UK have now been falling for six consecutive months and are now also year-on-year negative by 1.1%

During 2008, the price of the average home has been falling by nearly £45 every 24 hours.

Chief economist for Nationwide, Fionnuala Earler comments:

“The latest fall in house prices follows from the steep decline in house purchase transactions over the last half
year. As a result of falling demand from first-time buyers, higher mortgage rates and tighter lending criteria, the
number of mortgages approved for house purchases has fallen to record lows. The fall in transactions has pushed
up the stock of unsold property on the market and improved the bargaining power of buyers, thus pushing down
on prices.”

The last 10 years has seen an alarming asset bubble develop in the UK, a similar if not worse situation as to that which happened in America.