MarketWatch is reporting today that Nationwide has said that UK home prices are down a record amount.
House prices fell for the seventh consecutive month, dropping 2.5% from April, and were 4.4% lower than they were in May 2007, Nationwide said. The string of seven monthly price declines is also the longest since 1992, during the housing crash of the early 1990s.
–MarketWatch, 29 May 2008
This is the nail in the coffin for the UK. House prices are in a steep fall, reminiscent of the U.S. market. Expect major writedowns from UK banks by the Q3 reporting period in October and November if not before.
See also: Other posts under the label ‘UK.’