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Data to be published by Nationwide today (July 1st) is expected to show that the downturn in the property market has developed into a full-blown slump.
House prices in the UK have fallen for nine consecutive months, with the average price drop totalling £14,200 from its peak in summer 2007, reports the Daily Telegraph.
Figures from the Bank of England have also shown that mortgage approvals by banks and building societies have fallen to an all-time low, with just 42,000 loans approved in May, compared to 58,000 the month before.
BNP Paribas economist Alan Clarke told the Financial Times: "For approvals to fall by so much in one month having already collapsed over the last year underlines the ferocity of the housing market slowdown."
Many economists believe the slump will be similar to those that occurred in the 1970s and 1990s - the two most significant correction in the housing market to take place since the Second World War.
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