Nationwide says many mortgage holders deciding against sale

Date:Thursday 2nd December 2010
Author: Max Freedman

A significant number of mortgage holders may decide against putting their property on the market due to the current state of the market, a source from Nationwide has observed.

Martin Gahbauer, chief economist at the financial services provider, described how the public may be looking at the industry and concluding that the recent weakness in house prices will not benefit them.

As a result, individuals who do not need to sell their homes could be opting to keep them off the market, which is likely to lead to a shortage of properties for sale.

However, Mr Gahbauer added: "There is little evidence to suggest that house price declines are likely to accelerate in the months ahead."

The Nationwide mortgages spokesperson made his remarks after the firm published its monthly house price index, which showed annual growth but a month-on-month fall.

Last month, the firm unveiled its consumer confidence index, which indicated a drop of one point in October.