Property Value: Latest data released by a primary player in the House Sales UK market confirm that the fall in House values slowed fairly noticeably in October. The rate of fall was 0.4%, as compared to 1.3% for the month of September.
Property Value: The data were published by the Nationwide Building Society, which is one of the primary players in the House Sales UK market.
The Nationwide is one of the very few of the old mutual Building Societies to have managed to maintain its mutual society status. Indeed it’s the ONLY substantial one to survive the rush for demutualization a decade or so ago. Since then it has followed a very conservative course through the more recent rush for buying into the derivatives and U.S. Sub Prime Mortgage markets. The society steadfastly stuck to its core values, and stuck to the old fashioned, and at the time very unfashionable business model, of raising money by taking deposits from its cash rich clients, and using those funds to lend to its own younger customers who need finance to Buy Houses. As a result of this very conservative policy, the Building Society’s management now finds itself totally vindicated for not following the herd instinct of the other big financial institutions. It finds itself in an almost embarrassingly popular position with depositors, because they in turn recognise the fact that the society’s cautious policies have been vindicated, and they’re additionally very much attracted by society’s continued mutual status, which makes it very effectively insulated from the vagaries of the global stock markets. All the aforesaid makes the Nationwide a player to watch, listen to & respect, as it becomes a yet more dominant player in the House Sales UK market. This slowdown in the rate of reduction in House prices can only help to attract more Home Buyers back into the market, and so the rate of reduction could be slowed even further over the coming months. Remember that House Buyers aren’t just people looking to Buy Houses to live in. There’s a large and growing number of people and companies who see Properties as a safe home for their excess funds. These people and companies have begun to think this way after seeing several famous banks crash. They’ve realised that large deposits held by private individuals, and all cash held by limited companies are not protected against Bank crashes. Properties, on the other hand, can’t disappear, even if they can lose part of their value over the short to medium terms.